Sources within the DoT say that the department, which is yet to send its recommendations on the issue of allowing majority stake to foreign companies in mobile, paging, fixed and other telecom services, will in all probability oppose the recommendations given by the Minister of Industry, Murasoli Maran.DoT officials pointed out that in other countries, FDI is capped between 24 to 27 per cent, which is much below the existing ceiling of 49 per cent in India.

According to an earlier report in The Financial Express the Union Minister for Industry had indicated that the Ministry favoured lifting of the cap and allowing foreign companies to take a majority shareholding, of even up to 100 per cent, in the telecom services sector. This would bring more foreign investment into the market, the report added.

In the telecom equipment and manufacturing sector, already 100 per cent FDI is allowed.