The Hindu : Business : Telcos given three more months to comply with FDI norms

Online edition of India's National Newspaper
Thursday, Oct 05, 2006
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Telcos given three more months to comply with FDI norms

Special Correspondent

NEW DELHI: The Central Government has given telecom companies, with foreign direct investment, three more months to comply with the conditions imposed when the cap on foreign equity was increased to 74 per cent. The original Press Note 5 that laid out the FDI guidelines for the telecom sector was issued in November last with four months time for companies to abide by the norms.

Subsequently, the Government has given several extensions of three months each. The last extension was allowed till October 2. An official release issued here on Wednesday says that the Government has decided to further extend the time for telecom service provider companies to comply with the conditions till January 2, 2007.

The notification issued on Wednesday clears the confusion over the period of extension of the deadline as after the Cabinet meeting last week it was not made public. The Cabinet gave three months time to the Department of Telecom for resolving the inter-ministerial differences on the issue and extended the timeframe for telecom companies to meet the new FDI conditions.

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