The government on Wednesday announced its decision to allow the move, three weeks after the Union Cabinet approved 100 per cent foreign direct investment (FDI) in the telecom sector through automation.
The Department of Industry and Internal Trade Promotion (DPIIT) has issued a press release stating that foreign investment in the telecommunications sector will be in line with the terms of Press Note 3 of 2020.
This document states that a company of a country that shares its land boundaries with India or is the beneficiary owner of the investment in India or is a citizen of any such country can only invest in India through the Government.
On September 15, the Union Cabinet approved 100 per cent foreign direct investment in the telecom sector through automation.
The Cabinet also approved a relief package for the sector covering a four-year interim period for payment of legal arrears by telecom companies.
Nine structural reforms have been approved for the sector, Telecom Minister Ashwini Vaishna announced that day.
Apart from this, the cabinet also changed the definition of AGR (adjusted gross revenue), which led to a lot of financial pressure in the telecom sector. This was rationalized by avoiding the non-telecom revenue of telecom companies.