Telcos will need security nods to secure licences

Presently, foreign telecom companies don't require security clearances for entering India with equity holding of up to 49%

Foreign telecom companies and their directors will have to secure security clearances before getting operating permits from the Department of Telecommunications (DoT), the home ministry has said. The norms will be applicable to new ventures alone.

Currently, foreign telecom companies don’t require security clearances for entering India with equity holding of up to 49 per cent. For stakes exceeding 49 per cent, proposals are vetted by the home ministry, before being cleared by the Foreign Investment Promotion Board.

Henceforth, key executives such as chairpersons, managing directors and chief finance officers of foreign telecom companies will also have to secure security clearances, before a licence is issued. Though the clearance will be co-terminus with the licence, the government can revoke it if the situation warrants.

The ministry has suggested security clearances for the foreign personnel be made valid for a period of five years, against a year as of now. Clearances for foreign personnel deployed for installation, operation and maintenance of the licensee’s network will also be required.

Existing foreign telecom operators who have stakes in Indian ventures, such as Vodafone, Sistema, Telenor, Axiata and Singtel, won’t be affected. Equipment vendors such as Ericsson, NSN, Huawei, ZTE, Cisco and Juniper, will also remain unaffected.

In July 2013, the government had said for strategic sectors such as telecom, executives who had worked in Pakistan wouldn’t be permitted to work in India.