New Delhi: The government is finalising a plan to allow 100 per cent FDI for telecom services through the automatic route which allows firms to attract foreign funds without its approval, sources said on Wednesday.
The proposal is likely to be considered by the Telecom Commission, the apex decision making body of the Department of Telecom, at its meeting scheduled for on Thursday, they said.
"The TC is likely to consider raising of FDI limit up to 100 per cent for all telecom services including infrastructure through automatic route," a source said.
At present 100 per cent FDI is allowed, of which up to 49 per cent investment in a company can be done through the automatic route. The inflow of overseas investment beyond that requires government approval because of security reasons.
The panel is also likely to discuss the relief package recommended by an inter-ministerial group (IMG) for the telecom sector which is reeling under debt of around Rs 4.5 lakh crore.
In its September meeting, the Telecom Commission had in- principle approved the extension of time period for the payment of spectrum bought in auctions by telcos to 16 years from the current 10 years, as recommended by the IMG.
It had also approved the IMG recommendation to lower the interest rate charged over penalties imposed on service providers with slight modifications.