New Delhi, August 1 (IANS) The cabinet Thursday cleared 100 percent foreign direct investment (FDI) in the telecom sector, Commerce and Industry Minister Anand Sharma said here.
"There has been detailed discussion and now it has been raised to 100 percent," he said. The decision was taken at a meeting of the Cabinet Committee on Economic Affairs.
The decision in this regard was reached July 16 after Prime Minister Manmohan Singh held an inter-ministerial 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 the Foreign Investment Promotion Board's (FIPB) approval. Now out of 100 percent FDI, 49 percent will be done through automatic route and the rest will be done through FIPB approval route, Sharma said.
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.