The New Telecom Policy'99
envisaged the opening up of the National long distance service beyond
the service area to the private operators. The Government has decided to
open the National Long Distance Service without any restriction on the
number of operators.
The applicant must be an
Indian company, registered under the Companies Act'1956. It shall have a
net worth as well as paid up capital of Rs 2.5 crores. The net worth
shall mean as the sum total, in Indian rupees, of paid up equity
capital and free reserves. The net worth of promoters shall not be
counted. The networth as well as paid up capital is to be maintained
during currency of the LICENCE.
The FDI limit is 74 per
cent. Both direct and indirect foreign investment in the licensee
company shall be counted for the purpose of FDI ceiling. FDI up to 49
percent will continue to be on the automatic route. FDI in the licensee
company/Indian promoters/investment companies including their holding
companies, shall require approval of the Foreign Investment Promotion
Board (FIPB) if it has a bearing on the overall ceiling of 74 percent.
The licence for NLD Service
shall be issued on non-exclusive basis, for a period of 20 years. The
LICENSOR may extend, if deemed expedient, the period of LICENCE, by 10
years at one time, on request of the LICENSEE, if made during 19th
year of the LICENCE period.
