Cabinet note soon on foreign telecom bosses

The exercise to fine-tune foreign direct investment (FDI) guidelines for telecom services does not seem to be headed for an early resolution.

The security agencies are likely to oppose the department of telecommunication's tentative proposal to relax a clause that disallows foreigners to hold key executive positions in an operating company.

It is proposed that only companies with more than 49 per cent FDI conform to this norm.

A senior DoT official told Business Standard that a draft Cabinet note would be moved soon on the matter.

"We have arrived at a tentative decision to this effect. There is a slight difference of opinion on the issue. We are still working on resolving that. The final decision will have to be taken by the Union Cabinet by the end of the month," he said.

The applicability of the revised FDI guidelines for telecom has been held in abeyance till July 4.

"If that deadline passes without any decision, the rules will come into force unless the deadline itself is extended," the official added.