NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News  » Business » Telecom FDI cap to stay till 2G auction

Telecom FDI cap to stay till 2G auction

October 05, 2012 13:05 IST
Telecom Secretary R Chandrashekhar on Thursday said 100 per cent foreign direct investment (FDI) in telecom would not be possible before the 2G auction.

On Thursday, the Deepak Parekh panel on infrastructure had suggested the 74 per cent cap on FDI in the sector be removed.

"Hundred per cent FDI in telecom will not be possible before the 2G auctions,"  Chandrashekhar said on the sidelines of an internet governance event.

However, he added his department would look into the Deepak Parekh panel recommendations.

The government is expected to start auctioning 2G airwaves from November. The government had allowed foreign players to participate in the coming auctions without an Indian partner.

According to existing norms, foreign players have to form a joint venture with an Indian firm to start operations in India.

The Parekh committee also called for removing regulatory uncertainties in allocating, and sharing of spectrum distributed in the past.

BS Reporter in New Delhi