Review of Foreign Direct Investment (FDI) Policy on Telecom Sector - FEMA - Press Note No. 4 (2021 Series)

Government of India Ministry of Commerce Industry Department for Promotion of Industry and Internal Trade FDI Policy Section Press Note No. 4 (2021 Series) Subject: Review of Foreign Direct Investment (FDI) Policy on Telecom Sector. The Government of India has reviewed the extant FDI policy on Telecom sector and has made the following amendment under the Consolidated FDI Policy Circular of 2020 , as amended from time to time (FDI Policy): Para 5.2.14 of the FDI Policy is amended to be read as under: 5.2.14 TELECOM SERVICES Sector/Activity % of Equity/ FDI Cap Entry Route 5.2.14.1 Telecom Services (including Telecom Infrastructure Providers Category-I) All telecom services including Telecom Infrastructure Providers Category-I, viz. Basic, Cellular, United Access Services, Unified license (Access services), Unified License, National/International Long Distance, Commercial V-Sat, Public Mobile Radio Trunked Services (PMRTS), Global Mobile Personal Communications Services (GMPCS), all types of ISP licenses, Voice Mail/Audiotex/UMS, Resale of IPLC, Mobile Number Portability services, Infrastructure Provider Category-I (providing dark fibre, right of way, duct space, tower), Other Service Providers and such other services as may be permitted by the Department of Telecommunications (DoT). 100% Automatic 5.2.14.2 Other Conditions: The licensing, security and any other terms and conditions as specified by Department of Telecommunications from time to time, shall be observed by licensee/entities providing services as referred in Para 5.2.14.1 above, as well as investors. 2. It is clarified that notwithstanding the provisions of Para 5.2.14 of the FDI Policy as amended above, foreign investment in Telecom Services will be subject to the provisions of Para 3.1.1 of the FDI Policy [as amended vide Press Note 3 (2020 Series) dated 17.04.2020 ]. Accordingly, cases requiring prior Government approval under the provisions of Para 3.1.1 of the FDI Policy, will continue to be on the Government route. 3. The above decision will take immediate effect. (Manmeet Kaur Nanda) Joint Secretary to the Government of India DPIIT File No.: 5(4)/2021-FDI Policy, dated 06.10.2021