Telecom FDI guidelines shortly

BSNL's Indo-Sri Lankan submarine cable project deal nears finalisation.

The government today said that the foreign direct investment (FDI) guidelines for the telecom sector would be issued shortly.

"The national common minimum programme declares that FDI will continue to be encouraged and actively sought, particularly in areas of infrastructure, hi-tech and exports. Telecommunications sector meets this description. The guidelines for FDI in telecom are expected shortly," Minister of State for Communications and IT Shakeel Ahmed informed the Lok Sabha in a written reply.

Replying to another query, Ahmed said BSNL had floated a tender for the Indo-Sri Lankan submarine cable project last year and that the deal was nearing finalisation. The capital expenditure on the BSNL's International Long Distance (ILD) business would he approximately Rs 8,000 crore, he added.

The government also informed the Lok Sabha that the revenue from Speed Post services offered by India Post had been growing at an average rate of 22.8 per cent per year for the last five years, as compared to the 17.5 per cent growth projection for the express industry.

Revenues from express parcel post of the department were growing steadily. Speed post recorded an 18.70 per cent growth in revenue at Rs 354.16 crore during 2004-05 against Rs 298.35 crore in the previous year, Minister for Communications and IT, Dayanidhi Maran said in a written reply.

Express parcel post registered a 19.87 per cent rise in revenue at Rs 37.70 crore during the last fiscal against Rs 31.45 crore in 2003-04, Maran added.