Dish TV, Hathway Cables up on FDI in cable industry

[M@zh@R]

NEW DELHI: Shares of television cable service providers rallied on Friday after the Cabinet gave nod for hiking foreign direct investment (FDI) limit in the distribution platform from 49% to 74%.

"It will also moot for uniform FDI cap across various carriage platforms like DTH, IPTV, mobile TV, HITS and cable companies," said a report.

The information and broadcasting ministry and the TRAI official will meet next week for FDI clearance. The proposal includes out of 74%, 49% to be put under automatic route.

According to analysts, for complete digitisation for the cable industry close to Rs 20,000-25,000 crore will be required and hike in FDI will augur well for the industry as it will be helpful in providing the necessary funding.

The move will also push the way for other segments such as DTH, IPTV, Mobile TV and Cable companies, reports ET Now.

G Subramaniam of Hathway Cable in an interview with ET Now said, "We are adequately funded and don't require any additional funding."

Commenting on the FDI, Subramaniam said, "Strategic investors would want to see how digitisation really rolls out in the country and then they will probably take a call. So I don't know whether they are going to jump in the pool immediately at this point in time."
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