India is planning to liberalize its foreign direct investment (FDI) policy for the space sector. The government will allow up to 74% overseas ownership through the automatic route and up to 100% through the government route. This move aims to attract global investors in satellite communications and enable Indian companies to access the latest technologies in satellite manufacturing and operations.

Larsen & Toubro, Hindustan Aeronautics, Bharat Forge, Linde India, Centum Electronics, Avantel, and L&T Technology Services, all of which are in the business of supplying electronic components or engineering solutions to the aerospace sector, touched fresh 52-week highs in trade on Wednesday.

The battle lines are clear--satellite companies plus telco Bharti Airtel champion allocation; phone companies Reliance Jio and Vodafone Idea demand auctions. Its down to the telecom regulator to take a call, based on which DoT has to decide which way India will go, reports Kalyan Parbat

Based on its reasoning, the DoT had asked the Telecom Regulatory Authority of India (Trai) to give recommendations around the auction of satellite spectrum. However, Trai, in its consultation paper, has sought views on other allocations modes, such as administrative allocation, besides an auction.

Broadband India Forum (BIF) had sought Rohatgis views on whether the law requires that the only way to allocate satellite spectrum is auction. He replied, “No.” BIF also asked whether allocation of satellite spectrum for space-based communication services through a non-auction, administrative route, be permissible in law. Rohatgi said, “Yes.” ET has seen a copy of the 18-page legal opinion.