FIIs may get stake in newspapers

Information and Broadcasting Minister S Jaipal Reddy today said that the government would allow foreign institutional investors (FIIs) to invest in Indian newspaper companies.

But, this investment cannot be more than the sectoral cap of 26 per cent. Besides, the government will also allow printing of international editions of foreign newspapers in India.

Speaking at the Conclave 2005, organised by exchange4media, Reddy said, "Indian newspapers will also be straightened. We are planing to hike the limit on syndication of international news from the present 7.5 per cent to 20 per cent. "

He also said foreign newspaper companies wanting to publish their international editions in India would be allowed to set up fully-owned subsidiaries in the country, but would need the permission of the Foreign Investment Promotion Board for doing so.