Three weeks after the Union Cabinet approved 100 per cent foreign direct investment (FDI) in the telecom sector through the automatic route, the government on Wednesday notified the decision to allow the move.
The Department for Promotion of Industry and Internal Trade (DPIIT) has issued a press note saying that foreign investment in the telecom sector will be as per the norms of Press Note 3 of 2020.
This document states that an entity of a nation, which shares its land border with India or where the beneficial owner of the investment in India is located or is a citizen of such country, may invest in India only through the Government route. Can do.
On September 15, the Union Cabinet, while approving 100% FDI in the telecom sector through the automatic route, had announced several major reforms for this.
The Cabinet had approved a relief package for the sector, which included a moratorium of four years on payment of statutory dues by telecom companies.
Nine structural reforms were approved for the sector, Telecom Minister Ashwini Vaishnav announced that day.
Apart from this, the cabinet had also changed the definition of AGR (Adjusted Gross Revenue), which has created a lot of financial stress in the telecom sector. It was rationalized by excluding non-telecom revenue of telecom entities.