The Department of Telecom is considering moving a Cabinet note suggesting that telecom companies with no foreign direct investment should be allowed to have foreign chief executives.

The proposal, however, has to pass the cabinet as the current guidelines does not allow so. And there could also be hurdles from security agencies as well on 'strategic' point of view. DoT has sent these proposals to the Prime Ministers' Office and the PMO is believed to have asked DoT to consult other ministries like Home before before finalising anything.

The department is considering to prepare a note to take the proposal to the Cabinet. Since FDI guidelines are issued by Department of Industrial Policy and Promotion, and the issue of security is involved, DoT will also have to take DIPP into confidence in an effort to get approval from the Cabinet. And if all goes well, the fresh guidelines should be announced when the current extension given to telecom companies for complying with FDI guidelines expires on July 4, 2006.

DoT officials told PTI that the earlier rule of having Indian CEOs in telecom companies was there at the time of 49 per cent FDI norm. The companies with no FDI should not be subjected to the same law. If cabinet approves the proposal, it will put to rest one of the most talked-about issues of Indian telecom sector where Tatas have a foreign CEO Darryl Green for their telecom venture.

(www.hindu.com)