The Department of Telecommunication is understood to have sought three months time from the Prime Minister's Office for bringing out revised guidelines for foreign direct investment to sort out security issues.
Communications Minister Dayanidhi Maran is said to have taken up the matter with Prime Minister Manmohan Singh and sought three more months -- which would also buy time for telecom companies seeking changes in the original guidelines to comply with the revised norms.
The issue of FDI in telecom has become a tug-of-war between National Security Council and DoT.
Officials said this would be the second extension to be given to the operators. On March 7, the government announced changes in the guidelines governing increased FDI from 49 per cent to 74 per cent.
The government had then extended the time limit for the telecom service provider companies four months (from March 3 to July 2) to comply with the guidelines.
Ministry officials involved in the process said the dpartment had sought uniform guidelines for companies up to 49 per cent and between 49 and 74 per cent FDI.
The current guidelines, which deal with two sets of norms -- one for companies up to 49 per cent FDI and the other for between 49 and 74 per cent FDI -- should not have been agreed in the first place when it was being worked out. For, implementing two sets of norms is not workable.
The National Security Council under the PMO wants security issues to be handled by it separately and is pressing for dual norms for FDI, sources said.
NSC's contention is that 74 per cent FDI hike was allowed only after it was decided that stringent security norms would be followed for those with foreign equity between 49 to 74 per cent.
"There is no problem up to 49 per cent but there are stricter norms like ban on remote access, only Indian foreign CEOs and top managers which is not in sync with the purpose of hiking the FDI in the sector for companies with foreign equity above 49 per cent, why have dual policies?" DoT asked NSC in a communique.
"Why can't the same norms governing telcos up to 49 per cent be applied to the companies with 49 to 74 per cent FDI?" the department wondered.
FDI in telecom has constantly been linked to security. Rules could be tighter for telecom players with FDI up to 74 per cent. The companies can have foreigners in key posts but majority of the board members have to be Indians.
The applicability of the revised FDI guidelines for telecom has been held in abeyance till July 4. "If that deadline passes without any decision, the rules will come into force unless the deadline is extended," officials added.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
© 2026