I&B Ministry seeks suggestions of TRAI, PCI on FDI cap on

The I & B Ministry has sought the recommendations of Telecom Regulatory Authority of India (TRAI) and Press Council of India on a proposal to increase FDI in the media sector by the Department of Industrial Policy and Promotion (DIPP).

A statement released by the ministry said it had sought TRAI recommendations on issues related to Broadcasting Sector and Press Council's views for matters concerning the print media.

As the process of consultations with both TRAI and PCI would take time, the ministry has communicated to DIPP that existing limits of FDI caps and entry routes may continue and status quo in the interim be maintained as prescribed in the consolidated FDI Policy 2013, the statement said.

Earlier the I&B ministry had also undertaken consultations with stakeholders in the print and broadcasting sectors.

'During the consultations, divergent views emerged leading to the issues remaining inconclusive. It may be pointed out that while Indian Newspaper Society (INS) have sought additional time to give their comments, the News Broadcasters Association (NBA) has not furnished their comments till date,' the ministry statement said.

It said TRAI, being the broadcasting sector regulator, had to be consulted on account of the likely impact of the proposal on the sector. It said that on 20th September, 2012, the foreign investment limits in broadcasting sector were revised based on TRAI recommendations.

Officials said the ministry is considering increasing FDI caps in several sectors including broadcasting.

The Finance ministry is learnt to have suggested raising the foreign investment limit from 26% to 49% in print media, FM Radio, uplinking news and current affairs channels and to hundred% in broadcasting carriage services and printing of specialised magazines and facsimile editions of foreign newspapers.