Sunday, August 14 2005 18:17 Hrs (IST) - World Time -

New Delhi: India has pegged FDI (Foreign Direct Investment) in telecom at 49 per cent at the WTO (World Trade Organisation) in its just submitted revised services offer in the wake of certain concerns expressed by the Communications Ministry over higher binding rate.

The Commerce Ministry, mandated by the Cabinet Committee on WTO to make services offer to the WTO in line with the autonomous liberalisation in the country, has agreed to the Communications Ministry's stand of not committing 74 per cent FDI in telecom at WTO.

The Commerce Ministry's viewpoint in this regard also stems from the fact that the guidelines on allowing 74 per cent FDI in telecom is yet to be announced.

The Communications Ministry is yet to assess whether permitting 74 per cent FDI in telecom would lead to monopoly in a particular circle.

As per existing condition, every circle has to have at least two licensees.

The Communications ministry felt by binding FDI in telecom at WTO at 74 per cent currently it could have created problems even though offers made can be withdrawn until a final agreement is reached. But after the agreement, a member country cannot go back on what it has agreed upon without compensation.

India on August 12 filed a revised offer on services to WTO.

India submitted fresh commitments and improvements in offers to WTO in exchange for reciprocal commitments by our trading partners in the areas of interest to the country.