As per the existing FDI policy, FDI up to 49 per cent will continue to be on automatic route. FIPB approval shall be required for FDI in the licensee company, Indian promoters, investment companies including their holding firms if it has a bearing on the overall ceiling of 74 per cent.
"Under the present conditions, 74 per cent FDI under automatic route is not feasible in the larger interest of national security", DoT said in a note to Department of Economic Affairs as part of its inputs to the Investment Commission.
The Commission headed by Ratan Tata had said in its report, "Investment Strategy for India", the impediments -FDI regulation and other conditionalities seen to be detrimental to increased investment, lack of regulator independence leading to perceived absence of a level playing field and lack of a sustainable and equitable policy environment.
On the issue of aligning levies and fees on telecom with international benchmarks especially in the Asian region, DoT said, the matter would be taken into account appropriately.
DoT has responded to the suggestion of the Commission for allowing new services like Mobile Virtual Network Operators saying suitable amendment in licensing condition to permit resale of services and permit MVNOs will be considered appropriately by DoT.
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