New Delhi, July 16 (IANS) The government Tuesday cleared the much-awaited 100 percent foreign direct investment (FDI) in telecom sector, Union commerce minister Anand Sharma said here.
The decision was reached after Prime Minister Manmohan Singh held a meeting with senior cabinet ministers, including Finance Minister P. Chidambaram, Defence Minister A.K. Antony, Commerce and Industry Minister Anand Sharma and Telecom Minister Kapil Sibal at his official residence here.
Earlier, out of the 74 percent limit, upto 49 percent was done by automatic route and rest through Foreign Investment Promotion Board's (FIPB) approval. The minister said now out of 100 percent FDI, 49 percent will be done through automatic route and the rest will be done through FIPB approval route.
Raising the FDI limit to 100 percent will help in bringing fresh funds into the sector.
Earlier on July 2, the Telecom Commission approved 100 percent foreign direct investment (FDI) in the telecom sector.