The government on Monday said it will give three months time to foreign companies to form their Indian venture, with not more than 74% foreign equity, in case they win a licence to offer telecom services in the upcoming spectrum auction.
"At the stage of participation, they would not need to be...but as happened in 3G and BWA (auction), a completely foreign-owned entity can participate and if it wins it will have to nominate a company with not more than 74% foreign equity within three months," telecom secretary R Chandrashekhar told PTI.
As per the present norms, a foreign entity is required to set up a joint venture with an Indian company before participation in the auction process.
Spectrum auction is due to start from November 12.
The government has finalised the terms and conditions about entry fee, net worth and equity requirements, matters relating to performance bank guarantee and financial bank guarantee for the Unified Licence that are to be issued to players that win spectrum in the auction.