DoT rejects request for 100% FDI

The Department of Telecommunications has rejected a proposal to increase the ceiling on foreign direct investment (FDI) in the sector to 100% from its current maximum of 74%, reports the Business Standard. The DoT blocked the move, saying that telecommunications was a security-sensitive sector. A high-level committee had proposed the measure, arguing that the current limit allowed foreign investors complete control over their telecoms businesses but added a hurdle in finding Indians willing to proffer the remaining cash for a minority stake. The committee noted that other areas of infrastructure development already allow 100% FDI, adding that safeguards could be established to address security concerns.