Govt may allow 100% FDI in telecom via automatic route

At present 100% FDI is allowed, of which up to 49% investment in a company can be done through the automatic route

The government is finalising a plan to allow 100 per cent foreign direct investment (FDI) for telecom services through the automatic route, which allows firms to attract foreign funds without its approval, sources said on Wednesday.

The proposal is likely to be considered by the Telecom Commission (TC), the apex decision-making body of the Department of Telecommunications (DoT), at its meeting scheduled for Thursday, they said.

“The TC is likely to consider raising FDI limit up to 100 per cent for all telecom services, including infrastructure, through the automatic route,” a source said.

At present 100 per cent FDI is