Lok Sabha Question No. 4052 (UNSTARRED), answered on 2015-12-23
Subject: FDI in Telecom
Ministry: COMMUNICATIONS AND INFORMATION TECHNOLOGY
Asked by: MAHENDRA NATH PANDEY, KRISTAPPA NIMMALA, SUKHBIR SINGH JAUNPURIA, K. KAMARAAJ

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS AND INFORMATION TECHNOLOGY DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA

## UNSTARRED QUESTION NO.4052 TO BE ANSWERED ON 23 rd  DECEMBER, 2015

## FDI IN TELECOM

## †4052. DR. MAHENDRA NATH PANDEY: SHRI NIMMALA KRISTAPPA: SHRI SUKHBIR SINGH JAUNAPURIA: DR. K. KAMARAJ:

Will the Minister of COMMUNICATIONS AND INFORMATION TECHNOLOGY be pleased to state:

- (a) the details of investment made by foreign companies and financial institutions in communication sector during the last three years, and the current year, State and project-wise;
- (b) whether Government has allowed or proposes to allow multi-national/foreign companies for providing mobile and internal services;
- (c) if so, the details thereof;
- (d) the details of new proposal of FDI in Telecom; and
- (e) the efforts made by the Government to attract more FDI in the Sector for its expansions and growth?

## ANSWER

## THE MINISTER OF COMMUNICATIONS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD)

- (a) FDI equity inflow data is maintained by the Reserve Bank of India, region wise covering one  or more  states. The  details of FDI equity inflow received in telecommunication  sector  during  the  last  3  year  and  current  year  are  annexed  at Annexure I.
- (b), (c) & (e)  After the liberalization of telecom sector, the investment decisions are taken  by  the  entrepreneurs  depending  on  market  demand  and  supply.  The Government has created a favorable policy framework for attracting investment by permitting 100% FDI (Foreign Direct Investment), 49% through automatic route and beyond that through FIPB (Foreign Investment Promotion Board) route in telecom services. The FDI equity inflow for the year 2014-15 is more than double that of the year 2013-14.
- (d) The details of proposals of FDI in telecom services received during the year 2015-16 are at Annexure II.

## Annexure I

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS  FROM APRIL 2012 TO SEPTEMBER 2015 Sector TELECOMMUNICATIONS

| Sl No   | Regional Offices of RBI   | States Covered                                 | 2012-13 Apr-Mar    | 2013-14 Apr-Mar    | 2014-15 Apr-Mar    | 2015-16 Apr-Sep    | Total              |
|---------|---------------------------|------------------------------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|         |                           |                                                | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million |
| 1       | HYDERABAD                 | ANDHRA PRADESH                                 | 28.28              | 15.79              | 6.51               | 0.00               | 50.58              |
| 2       | PATNA                     | BIHAR, JHARKHAND                               | 0.00               | 0.00               | 1.49               | 0.00               | 1.49               |
| 3       | AHMEDABAD                 | GUJARAT                                        | 6.07               | 0.00               | 123.22             | 0.00               | 129.30             |
| 4       | BANGALORE                 | KARNATAKA                                      | 0.21               | 8.48               | 0.55               | 0.69               | 9.93               |
| 5       | KOCHI                     | KERALA, LAKSHADWEEP                            | 0.00               | 0.00               | 0.04               | 0.02               | 0.06               |
| 6       | BHOPAL                    | MADHYA PRADESH, CHATTISGARH                    | 0.00               | 0.00               | 0.00               | 0.00               | 0.00               |
| 7       | MUMBAI                    | MAHARASHTRA, DADRA & NAGAR HAVELI, DAMAN & DIU | 62.44              | 3.81               | 392.18             | 334.78             | 793.21             |
| 8       | JAIPUR                    | RAJASTHAN                                      | 0.00               | 0.00               | 451.98             | 0.00               | 451.98             |
| 9       | CHENNAI                   | TAMIL NADU, PONDICHERRY                        | 11.30              | 0.07               | 12.39              | 4.14               | 27.91              |
| 10      | KANPUR                    | UTTAR PRADESH, UTTRANCHAL                      | 0.00               | 0.01               | 0.00               | 0.00               | 0.01               |
| 11      | KOLKATA                   | WEST BENGAL, SIKKIM, ANDAMAN & NICOBAR ISLANDS | 0.00               | 0.24               | 0.00               | 0.00               | 0.24               |
| 12      | CHANDIGARH`               | CHANDIGARH, PUNJAB, HARYANA, HIMACHAL PRADESH  | 0.00               | 0.01               | 0.00               | 0.00               | 0.01               |
| 13      | NEW DELHI                 | DELHI, PART OF UP AND HARYANA                  | 3.02               | 1,256.81           | 253.55             | 319.52             | 1,832.91           |
| 14      | PANAJI                    | GOA                                            | 0.00               | 0.12               | 0.00               | 0.00               | 0.12               |
| 15      | REGION NOT INDICATED      | REGION NOT INDICATED                           | 192.55             | 21.60              | 1,653.03           | 0.00               | 1,867.18           |
|         |                           | Grand Total                                    | 303.87             | 1,306.95           | 2,894.94           | 659.15             | 5,164.91           |

## Contd……3/-

## Annexure II

## Proposals of FDI received in telecom services, during 2015-16

Rs  2672 Crores

|   S.No | Applicant Company                    | Proposed FDI (in Rs.)   |
|--------|--------------------------------------|-------------------------|
|      1 | M/s Limpkin Telecom Pvt. Ltd.        | Rs. 3 Crores            |
|      2 | M/s Compatel India Pvt. Ltd.         | Rs. 2.4 Crores          |
|      3 | M/s ATC Asia Pacific Ltd.            | Rs 335 Crores           |
|      4 | M/s Tikona Digital Network Pvt. Ltd. | Rs 2672 Crores          |
|      5 | M/s FireFly Networks Ltd.            | No fresh inflow.        |
|      6 | M/s Arkadin ConferIndia Pvt. Ltd.    | Rs. 8.85 Crores         |
|      7 | M/s Sistema Shyam Teleservices Ltd.  | Rs. 10,000 Crores       |
|      8 | M/s DEN Networks Ltd.                | Rs. 759.2 Crores        |
|      9 | M/s Limpkin Telecom Pvt. Ltd         | Rs 1 lakh               |

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