New Delhi, July 08: In view of objections raised by security agencies against raising FDI limit in telecom service companies, communication ministry has recommended alternative route of raising FIIs' investment outside the sectoral cap and subject to an overall investment cap of 74 per cent. "We discussed the matter with the security agencies and they (security agencies) are not in favour of passing on the management control in favour of foreign promoters... So we have said that alternative route of raising FII limit may be considered," communication minister Arun Shourie said here.
DoT had invited security agencies' views on the twin proposals of increasing FDI ceiling to 74 per cent from 49 per cent in respect of basic and cellular services and allowing FII investment outside the sectoral cap and subject to an overall foreign investment cap of 74 per cent.
DoT received replies from Intelligence Bureau and Directorate of Revenue Intelligence last month and both emphasised on management control remaining in Indian hands on the ground that communication is a vital infrastructure that has a critical role in the security of the nation.

Bureau Report