Ahlawat & Associates


A Big Relief to Telecom Sector

As part of its comprehensive package for the Telecom Sector of the Country, the Government of India has announced 100 % foreign direct investment (“FDI”) under the automatic route in the said sector. To date, investment was allowed in the Telecom Sector up to 49% via automatic route and any investment beyond 49 per cent had to be routed through the government i.e., the approval of the Government was required to be obtained.

Investors from countries China and Pakistan will not be allowed to make 100% investment via automatic route. A similar restriction was imposed on the FDI originating from countries that share a land border with India to prevent any hostile takeover of domestic businesses last year.

The Government has also announced a 4-year moratorium on unpaid dues, adjusted gross revenue (AGR) and spectrum dues, a much-needed relief to the Companies like Vodafone-Idea and Airtel.

Ahlawat & Associates
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