[June 17, 2013] Foreign telcos raring to go [Mail Today (India)] Tweet (Mail Today (India) Via Acquire Media NewsEdge) Decision on 100% FDI likely to come in bymonth- end THE government's move to raise FDI cap in telecom from 74 per cent to 100 per cent is expected to bring in more investment in the sector as companies such as Vodafone, Telenor and Sistema have been waiting for the decision to come through soon. Finance minister P Chidambaram is also keen on completing the inter- ministerial consultation process in this regard before the telecom commission ( the decision making body for the telecom sector) meets on July 2. The telecom commission will take up the issue of setting up a telecom finance corporation ( TFC) aimed at mobilising and channelising funds for telecom projects. Under the present rules, foreign companies can invest up to 74 per cent in the equity capital of telecom companies. Telcos like Vodafone have been seeking 100 per cent FDI in the sector. The UK firm had to go through a prolonged board room battle with its Indian partner Essar in 2011 after which it bought 33 per cent of the latter's stake to take its own share to 74 per cent. Recently Indian conglomerate Piramal Healthcare said it has plans to offload its 11 per cent stake in Vodafone India Limited ( VIL). Vodafone India CEO Martin Pieters last month said that they have expansion plans but did not disclose the details. Telecom minister Kapil Sibal recently said that the UK telecom giant Vodafone plans to invest billions of dollars in India. " Investors' renewed confidence to pump money in India's telecom sector is due to the new policy that has a clear roadmap for the next 20 years,'' Sibal had said. For Norway's Telenor, the foreign investment promotion board ( FIPB) on Friday approved its proposal to raise its stake in its Indian joint venture to 74 per cent from 49 per cent. Telenor has also sought an increase in the FDI limit from 74 per cent to 100 per cent. A senior Telenor executive told M AIL T ODAY that the company is looking at the right opportunity to bounce back as a major pan- India player. It has as limited operations in six circles of the total 22 telecom circles after the setback due to the cancellation of licenses by the Supreme Court. (c) 2013 India Today Group. All Rights Reserved. Provided by Syndigate.info an Albawaba.com company [ Back To TMCnet.com's Homepage ]