100% FDI in telecom

Subject – Economy

Context – Centre allows 100% FDI in telecom via automatic route

Concept –

The government notified its decision to permit 100 per cent foreign direct investment (FDI) under the automatic route in the telecom services sector subject to certain conditions.
Till now, only 49 per cent of FDI was allowed through the automatic route and anything beyond that had to come via the government route.
Telcos, including infrastructure providers, will be covered under the new FDI regime.
The 100 per cent FDI was part of the telecom reforms package approved by the Cabinet on September 15.
- Other reliefs included a four-year moratorium on AGR (Average Gross Revenue) dues, and an option for the government to convert dues into equity post the moratorium period.
The Department for Promotion of Industry and Internal Trade (DPIIT), in a statement, said foreign investment in telecom services will be subject to the condition of Press Note 3 of 2020
- According to Press Note 3 of 2020, an entity of a country, which shares a land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route.