Telecom Commission approves of raising the FDI cap in the telecom space to 100 per cent

The ongoing debate on raising the foreign direct investment (FDI) cap in the telecom sector has concluded.

After several rounds of discussion, the Telecom Commission has approved of raising the FDI cap from 74 per cent to 100 per cent. The proposal will now be put before the Cabinet for its final approval.

This proposal is expected to help stem financial losses in the sector, by facilitating the infusion of fresh funding.

With this, overseas companies can now hold 100 per cent stake in a telecom entity. It would also enable certain players to structure their holdings in a more transparent manner, without collaborating in joint ventures with Indian companies.