Telecom FDI hiked to 74%

The union cabinet today cleared a plan to hike foreign direct investment (FDI) limit in telecom to 74% from the existing 49%. This was announced by finance minister P Chidambaram after the cabinet meeting today.

Chidambaram also said the cabinet has accepted the 12th Finance Commission recommendations "in toto". The commission had submitted its report to President A P J Abdul Kalam on December 13, 2004 on devolution of central pool taxes to states during 2005-10.

The cabinet also cleared the national electricity policy, the finance minister said.