Department of Telecom is considering to move a Cabinet note suggesting that telecom companies with no foreign direct investment should be allowed to have foreign chief executives.
The proposal, however, has to pass the Cabinet as the current guidelines do not allow so. And there could also be hurdles from security agencies as well on 'strategic' point of view. DoT has sent these proposals to the Prime Ministers' Office and the PMO is believed to have asked DoT to consult other ministries like home before finalsing anything.
The department is considering to prepare a note to take the proposal to the Cabinet. Since FDI guidelines are issued by the Department of Industrial Policy and Promotion, and the issue of security is involved, DoT will also have to take DIPP into confidence in an effort to get approval from the Cabinet.
And if all goes well, the fresh guidelines should be announced when the current extension given to telecom companies for complying with FDI guidelines expires on July 4, 2006.
DoT officials told PTI that the earlier rule of having Indian CEOs in telecom companies was there at the time of 49 per cent FDI norm. The companies with no FDI should not be subjected to the same law. If the Cabinet approves the proposal, it will put to rest one of the most talked-about issue of the Indian telecom sector where the Tatas have a foreign CEO Darryl Green for their telecom venture.
Foreigners should not to be barred from taking up senior management positions such as CEO, CTO or CFO on telecom company boards, if there is no FDI, DoT has stated in its communication to the PMO.
The department also wants telecom companies to be allowed to have remote access for network, which is currently not allowed. It is of the view that many telecom companies are currently doing it unquestionably and why others should not be allowed?
At present no remote access is allowed to any equipment manufacturer or any other agency outside the country for any maintenance/repairs by the licensee.