NEW DELHI: Private FM radio and Cable TV companies will be able to seek more foreign participation if the government’s proposal for upping the foreign direct investment (FDI) sails through.
The proposal for hiking FDI limit in the FM radio sector from 20 per cent to 26 per cent has been mooted in consultation with other ministries but is yet to be placed before the cabinet for approval, senior Information and Broadcasting Ministry sources told RadioAndMusic.com.
The sources also said the government was working towards raising the FDI in the cable sector from 49 per cent to 74 per cent as that would aid the process of digitisation in the country.
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The Ministry will plead with the Finance Ministry for incentives to television distribution companies, the sources further said, adding that the I&B Minister Ambika Soni had already given a list of demands on behalf of the entertainment industry to Finance Minister Pranab Mukherjee.
At present, there are different foreign direct investment (FDI) limits for the various segments in the broadcasting industry. The Telecom Regulatory Authority of India (Trai) had in July last year suggested bringing uniformity and raising the limits – noting that it was a as low as just 20 per cent in some cases. Trai had, however, made an exception at 26 per cent for FM radio and TV news channels.
The broadcast sector consists of channels as well as distribution media such as DTH, cable etc. At present, 100 per cent foreign investment is allowed in non-news channels, while most distribution channels have 51 per cent Indian ownership.
Arvind Kumar, Joint Secretary (Broadcasting) in the Ministry, said that the broadcasting sector is expected to require Rs 400 to Rs 500 billion for its expansion in the next few years.
