New Delhi, October 7: The Center on Wednesday notified an influx of 100% foreign direct investment in the telecommunications industry via the automatic channel.
As a result, the Ministry of Promotion of Industry and Domestic Trade, via âPress Note No. 4 (2021 Series)â, said that the Center has reviewed the current policy on FDI in the sector. telecommunications and had made changes under the Consolidated Circular on FDI Policy of 2020.
Under the amendment, 100% of FDI via the automatic channel will be allowed in telecommunications services, including âcategory Iâ telecommunications infrastructure providers.
In financial jargon, under this route, no prior authorization from the Center or the RBI is required by a foreign entity before making an investment.
Last month, the Union Cabinet authorized 100% FDI under the automatic channel.
For its part, India Inc welcomed this decision.
According to Lt. General Dr SP Kochhar, CEO, COAI: âThe FDI approval will help the industry to build a robust telecommunications sector for the new India. With the amendment of the license agreements, telecommunications service providers will be relieved of the enormous burdens of bank guarantees and allow the availability of more financing for the expansion of the telecommunications network and the construction of a “digitally connected India.” “.
“In addition, the self-declaration based on the ‘SACFA’ authorization will facilitate the conduct of business and contribute to a faster deployment of services to citizens.”