Norms for 74% FDI in telecom put on hold

A group of secretaries to review the guidelines.

The government has decided to hold in abeyance the guidelines for implementation of 74 per cent FDI in telecom till further notice.

A group of secretaries, headed by principal secretary to the Prime Minister T K A Nair, will review the guidelines and prepare amendments for the Cabinet to take a final decision on the issue.

The deadline for all telecom service providers to meet conditions like ensuring that all key personnel were resident Indians, taking the consent of the serious Indian promoter in such appointments and equity changes was March 3.

The companies have now got a breather due to this "deemed extension".

At a meeting chaired by Nair and attended by secretaries of finance, telecom and commerce and IB on Thursday, it was decided that a committee of secretaries will go into the issue and come up with revised guidelines as soon as possible. No time-frame has been set for the committee, although the CoS may meet next Wednesday.

Sources said at today's meeting the ministries reached a broad consensus on relaxing the norms which mandated that only resident Indians should hold key positions, but a final decision was not possible due to diverging views on permitting remote access.

This is because officials of the Intelligence Bureau (IB) sought further clarifications on the subject, they added.