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The Narendra Modi-led National Democratic Alliance (NDA) government has increased the ceiling on foreign direct investment (FDI) in the media sector as part of its big-bang reform exercise to attract more investment into the country.
The government has allowed increased FDI limit in the uplinking of news and current affairs TV channels to 49 per cent, up from the earlier 26 per cent.
It has also hiked the FDI limit to 100 per cent in the broadcast distribution platforms like cable TV networks (MSOs and LCOs), DTH, teleport, headend-in-the-sky (HITS), mobile TV and broadcasting content services.
Now 49 per cent FDI will be allowed through the automatic route for distribution platforms.
For non-news & current affairs channels 100 per cent FDI is allowed through the automatic route.
To give a boost to the entire investment environment and to bring in foreign investments, the government has liberalised FDI in 15 major sectors including broadcasting.
The proposed reforms also enhance the limit of the Foreign Investment Promotion Board (FIPB) from current Rs 3,000 crore to Rs 5,000 crore.
The proposal also contains many other long-pending corrections including those pertaining to limited liability partnerships as well as NRI-owned companies, who seem motivated to invest in India.
Few other proposals seek to enhance the sectoral caps so that foreign investors do not have to face fragmented ownership issues and get motivated to deploy their resources and technology with full force.
Along with these sectoral reforms, the Department of Industrial Policy and Promotion (DIPP) has also been advised to consolidate all FDI-related instructions contained in various notifications and press notes and to prepare a booklet so that the investors do not have to refer to several documents of different timeframes.
The Telecom Regulatory Authority of India (TRAI) had in 2013 recommended that FDI limit should be enhanced to 100 per cent from 74 per cent in broadcast carriage services such as cable TV, DTH, IPTV, mobile TV, HITS and teleport, with up to 49 per cent FDI under automatic route and beyond 49 per cent with prior approval of the FIPB.
It had also recommended enhancement of the FDI limit to 49 per cent from 26 per cent for the uplinking of news and current affairs TV channels and FM radio services while maintaining status quo for the uplinking of non-news and current affairs TV channels and downlinking of TV channels where there is no FDI restriction.
It also recommended that FDI should only be allowed with prior approval of the FIPB.
Currently, companies like Fox (through Star and Sky) have interests in cable and DTH companies. While Sky owns 20 per cent stake in Tata Sky, Star has a joint venture cable distribution company with Sameer Manchanda's Den Networks called Star Den.
"The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of the government route where time and energy of the investors is wasted," said the ministry advisory
FDI in cable, DTH raised to 100% | Business Standard Mobile Website
Read more at:
FDI hiked in news channels, cable and DTH | TelevisionPost.com
The government has allowed increased FDI limit in the uplinking of news and current affairs TV channels to 49 per cent, up from the earlier 26 per cent.
It has also hiked the FDI limit to 100 per cent in the broadcast distribution platforms like cable TV networks (MSOs and LCOs), DTH, teleport, headend-in-the-sky (HITS), mobile TV and broadcasting content services.
Now 49 per cent FDI will be allowed through the automatic route for distribution platforms.
For non-news & current affairs channels 100 per cent FDI is allowed through the automatic route.
To give a boost to the entire investment environment and to bring in foreign investments, the government has liberalised FDI in 15 major sectors including broadcasting.
The proposed reforms also enhance the limit of the Foreign Investment Promotion Board (FIPB) from current Rs 3,000 crore to Rs 5,000 crore.
The proposal also contains many other long-pending corrections including those pertaining to limited liability partnerships as well as NRI-owned companies, who seem motivated to invest in India.
Few other proposals seek to enhance the sectoral caps so that foreign investors do not have to face fragmented ownership issues and get motivated to deploy their resources and technology with full force.
Along with these sectoral reforms, the Department of Industrial Policy and Promotion (DIPP) has also been advised to consolidate all FDI-related instructions contained in various notifications and press notes and to prepare a booklet so that the investors do not have to refer to several documents of different timeframes.
The Telecom Regulatory Authority of India (TRAI) had in 2013 recommended that FDI limit should be enhanced to 100 per cent from 74 per cent in broadcast carriage services such as cable TV, DTH, IPTV, mobile TV, HITS and teleport, with up to 49 per cent FDI under automatic route and beyond 49 per cent with prior approval of the FIPB.
It had also recommended enhancement of the FDI limit to 49 per cent from 26 per cent for the uplinking of news and current affairs TV channels and FM radio services while maintaining status quo for the uplinking of non-news and current affairs TV channels and downlinking of TV channels where there is no FDI restriction.
It also recommended that FDI should only be allowed with prior approval of the FIPB.
Currently, companies like Fox (through Star and Sky) have interests in cable and DTH companies. While Sky owns 20 per cent stake in Tata Sky, Star has a joint venture cable distribution company with Sameer Manchanda's Den Networks called Star Den.
"The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of the government route where time and energy of the investors is wasted," said the ministry advisory
FDI in cable, DTH raised to 100% | Business Standard Mobile Website
Read more at:
FDI hiked in news channels, cable and DTH | TelevisionPost.com
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