DoT floats cabinet note; seeks nod to foreign CEO's Tuesday, December 12, 2006 03:38 [IST]
New Delhi:
Department of Telecom has sought the Cabinet approval for non-Indian CEOs and
CFOs in telcos, besides seeking to do away with the remote access ban and dual
norms for those firms with and above 49 per cent of FDI.
DoT sent the final Cabinet note to various ministries yesterday.
January two is the latest deadline by which the telecom companies have to
comply with the FDI guidelines. Cabinet is expected to approve the changes in
the original guidelines of FDI in telecom (Press Note 5) before that.
In the note, it has said there is no need to insist on having Indian CEOs and
CFOs at the telecom companies and nationality criteria to choose CEOs/CFOs
would only look regressive when the country is encouraging FDI in the sector.
The note says, with the Ministry of Home's approval for such foreign nationals,
they could be appointed in the Indian telecom companies.
What it means is if the Cabinet approves the DoT's suggested view that it
should not be made mandatory for telecom companies to have top management being
run by only Indians, Tata Teleservices, which has a foreign CEO Darryl Green, will be the main beneficiary.
DoT's Cabinet note also seeks to allow remote access to telecom companies with
the caveat that there will be blanket approval for existing network
operations/management centres (outside in India), while for new centres, the
Government approval would be needed.
Important voice and data traffic like that of key ministries and Government
would be in a secured network so that even if the remote access centre is
outside, these official data would not be exposed to anybody.
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