Centre Allows 100% Telecom FDI Via Automatic Route, Slashes Bank Guarantee Requirement By 80%

The Department of Telecom has slashed performance and financial bank guarantee requirements of telecom operators by 80 percent, according to a licence amendment note issued on Wednesday.

New Delhi: The government on Wednesday allowed 100 percent foreign direct investment in the telecom sector through automatic route to promote ease of doing business in the industry.

The telecom department has also reduced performance and financial bank guarantee requirements of telecom operators by 80 per cent.

Earlier, 100 percent of FDI was allowed, of which 49 per cent of investment was permitted through automatic route. 

According to the DPIIT's press note, 100 per cent FDI is permitted across all kinds of telecom services and infrastructure providers.