MUMBAI: The Associated Chambers of Commerce and Industry of India (Assocham) on Sunday urged the government to hike FDI ceilings in FM radio from existing 20 per cent to 49 per cent.
Stressing the need to streamline Foreign Direct Investment (FDI) regimes in Media and Entertainment (M&E) sector, the Chamber also proposed that FDI limit in Cable Networks should also go up to 74 per cent from the existing limit of 49 per cent and in uplinking a News and Current Affairs TV Channel it be raised to 49 per cent from current level of 26 per cent.
The Chamber has pointed out that the present permitted level of FDI in the FM radio segment is also subject to approvals of Foreign Investment Promotion Board (FIPB). In addition, the Ministry of Information & Broadcasting and Wireless Operating Licence from the Wireless Planning & Coordination (WPC) Wing, which falls under jurisdiction of Ministry of Communications, too have roles in 20 per cent FDI permitted in FM radio.
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The process is too cumbersome to woo FDI in FM segment and thus needs to be not only reviewed with single window clearance but also requires to be hiked to the proposed limit of 49 per cent, Assocham President Swati Piramal said.
Stating that rules regarding FDI vary from segment to segment in the M&E sector, the chamber, in its representation address to the ministry of information and broadcasting (I&B) as also Finance Ministry, said,”There is a strong case for review of FDI policy to bring consistency in the policy and to provide a level playing field for competing technologies.” ”This issue has gain importance on account of increasing convergence in broadcasting and telecommunication technologies and the impact of this convergence on competition in the market,” she said.
Similarly, in cable networks, 49 per cent of FDI ceiling is subject to FIPB approval which also requires registration with the Head Postmaster of the area within whose territorial jurisdiction, the office of the cable operator is situated.
In addition, Multi-System Operators who provide cable television services require Ministry of Information & Broadcasting permission.
This also needs to be made simpler, the Chamber said. In Direct-to-Home Services, the current FDI ceiling (49 per cent) is also subject to FIPB approval. Licence from I&B in consultation with the Ministry of Home Affairs and Department of Space also needs to be taken simultaneously.
Further, Standing Advisory Committee for Frequency Allocation (SACFA) clearance is also required from Wireless Planning & Coordination Wing of Ministry of Communications. It should also be reviewed urgently, the President opined.
In Uplinking a news and current affairs TV channel also, the current FDI ceiling needs FIPB approvals. It also requires licence from MI&B in consultation with Ministry of Home Affairs (MHA), which makes it less luring for FDI, the Assocham added.
