I think this is only for international gateways using foreign satellites physically located within the country. No? Does this effect users of, say, Airtel? Didn't Airtel use Singtel's gateway (located outside India)?

And this does not look like a proposal, more like a TOC for establishing a gateway.

Nevertheless, a terrible thing.

EDIT: Nope, it is for everyone - It is same clause in Cable Landing Stations for ISPs using offshore Gateways. See here - http://www.dot.gov.in/isp/landing_station.doc

Now I wonder why aren't ISPs already blocking. The documents don't look old, they are still linked on their site.

EDIT 2: Document is too old. Doesn't hold.