Delhi: The group of ministers (GoM) on telecom has
recommended a hike in the foreign investment limit in
Indian telecom companies to 74 per cent from the present
overall cap of 49 per cent.
direct investment (FDI) by foreign telecom companies will
still remain capped at 49 per cent; an additional 25-per
cent investment by foreign institutional investors (FIIs)
will be permitted in the joint venture entity.
now, the 49-per cent foreign investment cap on telecom
companies included both FDI as well as FII investment.
The GoM recommendation, which will go to the union cabinet
for approval, is expected to attract more investments
in the fast-growing telecommunications sector.
panel has also recommended that the management control
of telecom companies should remain with Indians, regardless
of the foreign investment in a company, Union Telecommunications
and Disinvestment Minister Arun Shourie said.
GoM, comprising six ministers and chaired by Finance Minister
Jaswant Singh, has also recommended that telecom companies
operating within a circle be allowed to merge as long
as the number of operators in that circle does not fall