Maran wants 4 months to implement FDI norms

The Communications Ministry is understood to have sought time till February 2, 2007 for implementing guidelines that permit up to 74% FDI in the telecom sector instead of the December 31 deadline set by the government.

According to highly placed sources, Communications and IT Minister Dayanidhi Maran has sought the time to enable resolution of inter-ministerial differences and addressing issues concerning telecom operators, particularly the security aspect, and different set of rules for firms with FDI up to 49% and those with FDI between 49-74%.

Sources said the issue could go to the empowered group of ministers on FDI headed by Defence Minister Pranab Mukharjee for early resolution of the differences.

The original Press Note 5 that laid out the FDI guidelines for the telecom sector was issued in November last year with four months time for companies to abide by the norms. Having failed to ensure compliance, the government gave two subsequent extensions of three months each.

This is the fourth time that an extension has been granted, but its duration will be clear only after the notification is issued.