2 DoT panels formed to implement new FDI rules

The government today constituted two committees to oversee implementation of foreign direct investment (FDI) in telecom sector by the companies, especially the guidelines concerning security aspects.

The cap on FDI in the sector was increased from 49 to 74 per cent recently.

According to sources, home affairs and defence ministries, Intelligence Bureau and Department of Telecom would jointly recommend the activities about security aspects to be carried out by the Vigilance Telecom Monitoring (VTM) cells of the department of telecommunication (DoT).

The Union Cabinet had approved enhancement of the FDI cap to 74 per cent from 49 per cent recently and had given three-month time to companies to comply with the revised guidelines.

The VTM cells of DoT will assist the security agencies on technical interface between telecom service providers and the security agencies.

One committee has been set up under the chairmanship of DoT's Additional Secretary R Bandyopadhyay, to monitor compliance of the Cabinet decision by various agencies on quarterly basis.

As per the Cabinet decision, according to a note by DoT's investment policy cell, immediate steps are required to be taken for setting up a centralised lawful interception and monitoring system.

Till such a system is installed, the officers of the VTM cell would assist the security agencies in carrying out the security relating activities at the premises of the telecom service providers.