New Delhi: The government on Wednesday allowed 100 per cent foreign direct investment in the telecommunications sector through automated means to encourage easy business in the industry.
The Department of Telecommunications has reduced the performance and finance bank guarantee requirements of telecom operators by 80 percent.
Previously, 100 per cent foreign investment was allowed, of which 49 per cent was allowed through automation.
According to DPIIT, 100 per cent direct investment is allowed through all types of telecommunications services and infrastructure providers.
In Press Note 4 (Series 2021), the government has revised 100 percent foreign direct investment in the sector to “automatic way”. The move will bring relief to Vodafone Idea as it seeks to raise funds from abroad to support its business.
The Department of Telecommunications (DoT) has reduced the performance and finance bank guarantee requirements of telecom operators by 80 percent.
Amended both the old telecom license in the UASL (Unified Access Services License) section and the new license launched in the 2012- Unified License (UL) section.
The move puts Bharti Airtel, Reliance Jio, Vodafone Idea, BSNL Internet licensees like Tata Communications and Atria Convergence Technologies in banks to secure cash balances (Fiji).
Under the revised protocols in the UL, telecom operators are required to pay Rs. 220 crore, compared to Rs. Provide performance bank guarantee (PBG) up to Rs 44 crore.
Similarly, telecom operators are required to provide a maximum of Rs 8.8 crore financial bank guarantee (FBG) per circle, up from the previous requirement of Rs 44 crore.
The Licensing Amendment states that this rule does not apply to cases in which Bank Guarantees (FGs) are issued or subject to any court order.
In the case of UASL, three different amounts of FPGs were charged – Rs. 50 crore for each A telecommunication circle, Rs. 25 crore for the B service area and Rs. Is coming.
“Existing licensees’ PBGs and FBGs should be revised to 20% of the licensee’s current total …” Amendment note for UASL.
The new rules do not apply to telecom operators who are currently in the process of liquidation.
These developments are part of the telecommunications reforms announced by the government in mid-September.
The DOT has relaxed the rules for destroying mobile tower installations in the country.
Now, permission for mobile tower installation will be done through self-notification and through the Saral Sanchar Portal in automatic time limit mode.
“The system will automatically delete cases and applicants can download the computer-generated SACFA permit from DoT’s navigation portal.
The department has issued new rules with amended rules to reduce the performance of telecom operators and the need for a financial bank guarantee by 80 per cent.
The Cellular Operators Association of India (COAI), a telecom industry body, has said that foreign direct investment approval will help create a strong telecommunications sector for the new India.
“By amending the license agreements, telecom service providers will be able to ease the huge burden of bank guarantees, expand the telecommunications network and create more funding to create a digitally connected India.
“Furthermore, self-declaration based on SACFA licenses will facilitate doing business and enable faster implementation of services to citizens,” said COAI Director General SP Kochhar.
(This story was not edited by NDTV staff and was created automatically from a syndicate feed.)