Confusion prevailed over review of foreign direct investment guidelines in telecom with Communication and IT Minister Dayanidhi Maran claiming that he was unaware of any such move.
Skirting a question that sought to know which clause of the FDI guidelines was being reviewed, Maran said "Is there a review.... I am not aware of it."
Maran's comments assume significance since Commerce and Industry Minister Kamal Nath had on Tuesday stated that the government was looking into the matter.
According to Kamal Nath, government is reviewing present guidelines for FDI in telecom following a demand by the industry to hire expatriates to fill top positions.
"We are looking at it," Nath had said.
The appointment of expatriates came to the fore when some Indian telecom companies like Tata Telecom with absolutely no FDI appointed foreign citizens as chief executive officers.
The review was necessitated since present FDI guidelines state that companies cannot have expats as their chief executive, chief technology and chief financial officers. The policy also does not mention categorically, whether or not the rules applied to entities, which had appointed expats before the 74 per cent foreign direct investment was allowed.
The industry ministry, which has received representations from sections of the industry seeking flexibility with regard to guideline not being made applicable retrospectively, has favoured this view.
The ministry has moved a note to the communications ministry, which in turn has sent it to Department of Economic Affairs to solicit its views, official sources said.
Telecom companies have been given four months to comply with FDI guidelines notified in November last year.
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