Salient Features

·     No approval is required for foreign equity participation upto 50/51/74/100˜ percent in specified industries.

·     Foreign investment in excess of above limits as well as in non- specified industries, can be made with approval of the Foreign Investment Promotion Board (FIPB), a high powered inter ministerial body under the Ministry of Industry.

·     Decisions on all foreign investment proposals are taken by the FIPB within four weeks of filing of the application.

·     For each foreign investment proposal in excess of Rs 1 billion, an officer of the administrative ministry (Ministry of Communications in case of proposals relating to telecom industry) is designated as a monitoring officer to help processing and implementation of the project in conjunction with Central and State authorities.

·     Free repatriation of profits and capital investment is permitted, except for a specified list of consumer goods industries where it is subject to dividend balancing against export earnings.

·      Use of foreign brand names/trade marks for sale of goods in India is allowed.

·      Indian capital markets are open to foreign institutional investors.

·      Indian companies are permitted to raise funds from international capital markets.
 

·     India has entered into agreements for avoidance of double taxation with over 45 countries.

·     India has signed several bilateral investment protection agreements.

·     Special investment and tax incentives are extended for exports and certain sectors such as power, telecommunications, electronics, software and food processing.

·     'Single window' clearance facilities and 'investor escort services' have been provided in various states to simplify the approval process for new ventures.

·     Foreign Investment Policy for Telecom Sector
 

6. Data Network PSPDN (Packet Switched Public Data Network) to cover all DHQs. Frame Relay Network to provide access upto 2 Mbs will be introduced in major cities. High Speed VSAT network for providing Voice and Data will be expanded. ATM network will be introducd. Internet network will be expanded. Make available sufficient bandwidth for the spread of Internet and Information Technology Set up Internet Nodes at SSA Headquarters by January 2000 and then upto District Headquarters.

7. Modernisation of Customer Services Computerised billing and accounting in all the Divisions. Modernised Fault Repair Service. Computerised Directory Enquiry Services for all SSAs. Completion of National Directory Enquiry service for all SSAs. Computerise Commercial activities in all the Divisions. Provide greater accessibility for payment of bills. Provide single window customer service centres.

8. New Services It is aimed to provide widest permissible range of service with (the quality of service of) world standard quality to the customers at reasonable prices.The following services are identified to be introduced by DTS. ISDN upto all SSA Headquarters. ISDN upto DHQ level subject to availability of demand. IN in first phase in a few major cities and in the next phase all over the country. Internet Services. Mobile Service. Multimedia Services. The following services have been identified as Value Added Services by the Department of Telecom Services for franchise to private/public sector companies on non-exclusive basis. Cellular Mobile Telephone Service Radio Paging Service Electronic Mail Voice Mail and Audiotex Service Video Conferencing Videotex Internet Public Mobile Radio Trunked Service 64 kbps CUG Data Service through VSAT Credit and Authorisation.

9. Telegraph Ensure delivery of 98% of the telegrams within 12 hours and 100 % of the telegrams within 24 hours through Store and Forward Fax Facilities and by modernisation of telegraph services by the introduction of micro processor based technology.

10. Special Focus Areas While providing telecom facilities liberally during the plan period 1997-2002, priority for early completion within this period will be given to the following areas: Sensitive Border areas. Tribal and Hilly areas. Industrial Growth Centres.

11. Staff Quarters Achieve 30% staff satisfaction for all the difficult areas of North-East and other states. Achieve a staff satisfaction ratio of 20% on the average by 2002.