Home Ministry Calls for Re-imposition of 74% FDI Cap in Telecom Companies

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The home ministry has called for re-imposition of the 74% foreign ownership cap in telecom companies on “security grounds”, a move that could pose challenges for Norway’s Telenor Group and Russia’s Sistema JSFC, which have both shown an interest in fully owning their local units after the previous government allowed 100% FDI last year.

The ministry has sought a review of telecom FDI norms in the backdrop of last year’s revelations by ex-US National Security Agency contractor Edward Snowden regarding surveillance programmes that snooped on email and personal data. FDI norms must be “viewed afresh due to revelations of the Prism (US) and Tempora (UK) programmes”, according to a home ministry note to the Department of Industrial Policy & Promotion, seen by ET. Original post at Telecom Economic Times

Wahengbam Rorrkychand

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