"FDI increase in telecom guidelines are coming next week. It is being sent to the PMO for approval", Union Telecom Minister Dayanidhi Maran said in new Delhi. Incorporating one of the major demands of the industry, DoT had proposed that the foreign holding of public sector banks and other banks be excluded in the 74 per cent FDI limit and it be treated as domestic equity.
The finance ministry is believed to have agreed to DoT's view that it should not be included in the overall 74 per cent FDI and be treated as domestic equity, sources said.
In fact, the finance ministry had sent back the draft on FDI increase to DoT after fine-tuning the terms of conditions with "very minor changes" and it would now be sent to the prime ministers' office for one-point approval, the sources said.
The cabinet approval envisaged that the majority of directors on the board including the chairman, MD and CEO should be resident Indians.
The CTO and CFO should also be resident Indian citizens. The licensor shall also be empowered to notify any key position to be held by resident Indian citizens.
Further, the resident Indian promoter should hold at least 10 per cent equity of the licensee company. These provisions have been retained, sources said, adding cellular companies have been given a maximum of four months to comply with the 74 per cent FDI in the sector.