Cabinet may take up FDI in telecom tomorrow

The Union Cabinet is likely to take up tomorrow a proposal to enhance foreign direct investment (FDI) limit in telecom to 74% in an effort to come out with guidelines before the current deadline of April 2 for meeting the norms expires.

Department of Telecom (DoT) and security agencies have resolved their differences over the remote access issue and if the Cabinet gives its approval tomorrow there is a possibility that the guidelines would be framed, official sources said.

DoT has incorporated a series of additional security norms, including the setting up of a centralised interception and monitoring system as caveats of allowing remote access.

After meetings held under the cabinet secretary-headed committee on FDI in telecom, DoT and security agencies have agreed to allow remote access to mobile operators, albeit with some caveats, sources said.

In December last year, the Cabinet had extended the deadline for telecom operators to comply with the norms for an increased foreign direct investment limit of 74%.

Norms relating to allowing remote access, appointment of foreigners in top positions and taking away veto powers from Indian shareholders with 10% equity in telecom joint ventures are some of the key revisions in the guidelines that are expected to be notified when the current deadline of April 2 expires, the sources said.