DoT Revises Guidelines for Registering Infrastructure Providers

On Friday, the DoT issued revised guidelines to register Infrastructure Providers - Category-I, or IP-I. This category includes infra suppliers that supply assets such as towers, dark fiber, Right of Way, and duct space.

DoT Issues New Guidelines for Infrastructure Providers - Category-I

One of the key developments here is that the telecom department has allowed FDI up to 100% in an Indian company, to register as an IP.  However, the government has placed certain conditions on the same as well. First, the FDI conditions do not allow companies/individuals from any countries sharing land borders with India to take the direct route. The conditions mandate that such companies/individuals have to take the Government route.

Furthermore, any IP-I applicants need to comply with all the existing FDI norms of the Government. This means that the government might also take security concerns into account before approving anything. The revised guidelines also read that the applicants have to arrange for their own Right of Way. The DoT also noted that infrastructure providers have to transfer ownership to an entity based in India of all the existing and future FDI. Also, it will count the direct and indirect FDI towards the total FDI in the company.

Also, the DoT noted that it will let the applicants know about the approval/rejection of their applications within 15 days. However, the department has not placed any restrictions on the number of entrants; the DoT will allow everyone that passes the requirements.

Incidentally, these IP-I companies provide dark fiber, duct space, towers, and Right of Way on either lease, rent, or outright sale. The DoT has said the telcos and the IP-I companies have to report all agreements; the department has allotted 15 days from the time of signing the agreement to the reporting of the same. Furthermore, the DoT has mandated the IP-I companies to follow a non-discriminatory policy for providing access to telecom infra.