According to Communications minister Ram Vilas Paswan whether the FDI cap inNLD is 49 per cent or 100 per cent, will depend on which category it fallsinto. The services part will have a cap of 49 per cent, as per the existingpolicy. However, if a part of it falls under the manufacturing sector, thenthe FDI will be allowed to go up to 100 per cent. Meanwhile, both Paswan aswell as DoT reetirated that FDI in telecom services will not exceed 49 percent. Dismissing media reports, the minister pointed out that the cabinetnote which recommended 100 per cent FDI was with respect to e-commerce andnot telecom services. Though senior DoT officials admitted that the cabinetis the final authority on whether the existing cap will be removed, theyalso pointed out that while taking a decision, the cabinet can not disregardthe opinion of the minister concerned, pointed out senior DoT officials.

Meanwhile, VSNL presented interim dividend of Rs 30.19 crore, to theCommunications minister at a function held in New Delhi. According to S KGupta, chairman and managing director, VSNL, this is the first time thatVSNL has declares interim dividend, which is 60 per cent of the total sharecapital of Rs 95 crore against the annual dividend of 80 per cent of theprevious year. Last year, VSNL had paid an interim dividend of Rs 41.06crore to the government. Meanwhile, the Minister assured VSNL that itsmonopoly will stay till 2004, thereby dispelling doubts that the monopoly ofVSNL will be removed before that.

According to Gupta, the rumours that the monopoly of VSNL will be removedsoon was affecting the investor confidence and this is evidenced in theshare price of the company, which has fallen recently.