Another 3-mth extension for telecom FDI norms

New Delhi, Sept 29 | Updated: Sep 30 2006, 05:30am hrs
The Cabinet on Friday gave time to telecom companies till December 31 to comply with the provisions of press note 5 (PN 5), which allows them to raise their composite foreign direct investment limit up to 74%. This is the third extension given to the companies by the government.

The department of telecommunications (DoT) had, however, moved a proposal to suspend PN 5 till a broad consensus emerged between the ministries on the issue. The current extension ends on October 2.

Briefing the media after the Cabinet meeting, finance minister P Chidambaram said that during the three-month period, inter-ministerial discussions would take place to resolve the issues. He said that attempt would be made to reconcile the differences between the various ministries and then a final proposal would be brought before the Cabinet.

Chidambaram said that during the discussions attempt would be made to meet the requirements of the security agencies and the difficulties of the telecom operators.