Defending the decision to allow 74 per cent FDI in telecommunication sector, government assured the Rajya Sabha on Thursday that security interests of the country would never be compromised while permitting larger foreign investments.
Replying to supplementaries during Question Hour, Communications and IT Minister Dayanidhi Maran told Shobhana Bhartia that the government while bearing in mind the security aspects would ensure there was no 'overdoing' of the same.
On the issue of government clearance for a joint venture involving Essar to enhance FDI to 74 per cent, Maran told members there was no need to have any discussion as this venture had been cleared after it was found to be within the guidelines framework.
On Thursday, the Foreign Investment Promotion Board cleared the proposal from Essar Group to increase its foreign funding in the telecom JV Hutchison Essar by 5.85 per cent taking the total foreign equity to 74 per cent.
In reply to another query, Maran said though the Telecom Regulatory Authority of India had recommended setting up of office of Ombudsman, the government after careful consideration decided it was not feasible.
Instead, on September 22, various service providers were asked to set up a consumer redressal mechanism at the call centre level and at the level of an Appellate Authority within the service providers' organisation.
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