The Telecom Commission (TC) on Tuesday approved the proposal to raise the cap on FDI in the telecom sector to 100 per cent from the present 74 per cent. While TC has given its green signal to 100 per cent FDI in the sector, up to 49 per cent can come via the automatic route. For investments beyond that level, permission will have to be sought from the Foreign Investment Promotion Board (FIPB). Meanwhile, TC has sought a detailed project report on the feasibility of creating the Telecom Finance Corporation (TFC), which would address the sector’s funding challenges. It is proposed that TFC will be set up on the lines of sectoral finance bodies like Power Finance Corporation and Tourism Finance Corporation of India. It will have a target to finance Rs 38,000 crore over five years. TC has decided to appoint a consultant to look into valuations and other issues for the proposed divestment of equity in Telecommunications Consultants India Ltd (TCIL). In March 2012, the Department of Disinvestment had decided to divest 10 per cent in TCIL, which was also given the option of taking a call on fresh equity infusion. In June 2009, the board of directors of TCIL had approved the proposal to issue 4.32 million equity shares of Rs 10 each through an IPO