INSUBCONTINENT EXCLUSIVE:
Government has notified foreign investment in telecom sector through automatic routeThree weeks after the Union Cabinet had approved 100 per
cent foreign direct investment (FDI) through automatic route in the telecom sector, 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 regulations of Press Note 3 of 2020.This document states that an entity of a nation, which shares its
land borders with India or where the beneficiary owner of an investment into India is located in or is a citizen of any such country, can
invest in India only through government route.On September 15, the Union Cabinet had approved 100 per cent FDI through automatic route in
the telecom sector while announcing several big bang reforms for it.The Cabinet had approved a relief package for the sector, which included
a four-year moratorium on payment of statutory dues by telecom companies.Nine structural reforms were approved for the sector, Telecom
Minister Ashwini Vaishnaw had announced that day.Apart from this, the Cabinet had also changed the definition of AGR (adjusted gross
revenues) which have led to a lot of financial stress in the telecom sector
It was rationalised by excluding non-telecom revenues of telecom entities.
