Mauritius top FDI source for telecom

New Delhi, March 29 | Updated: Mar 30 2005, 05:30am hrs
Tax haven, Mauritius, is the largest source of foreign direct investment (FDI) into the Indian telecom industry. It has been the highest contributor for the August 1991 to August 2004 period, according to data available with the government.

Investments via Mauritius amounted to Rs 7501.12 crore, translating to over 73% of the total FDI received in telecom by India since 1991.

United Kingdom (UK) is second on the list for telecom FDI with investments of Rs 887.58 crore, accounting for 8.64% of such investments since 1991.

The United States (US) stood third with Rs 492.9 crore invested in the sector (share of 4.8%) followed by Netherlands, Thailand and Sweden with shares of 3.07%, 2.15% and 1.49%, respectively.

According to the report of the department of telcommunications (DoT), the Indian telecom industry received a total of Rs 10,273 crore as FDI inflow since August 1991.

During August 1991 to September 2004 period, 930 proposals of FDI in telecom for Rs 41,369 crore were approved, which is next only to the approvals in the power and oil sectors.

Holding companies attracted the maximum FDI of Rs 4,842 crore (47.13%), followed by cellular mobile telephone services at Rs 2,965.8 crore (28.87%).

FDI up to 100% has been allowed in the telecom manufacturing sector and services (like e-mail, voice-mail, Internet without gateways), infrastructure providers (IP-II), according to the DoT report.