Govt to review FDI cap in I&B

The Union government has decided to reconsider the cap on foreign capital investment in the information and broadcasting sector, the Rajya Sabha was told today.

In a written reply in the Upper House, Minister for Information and Broadcasting P R Dasmunshi said his ministry will seek fresh Telecom Regulatory Authority of India (Trai) recommendations on existing FDI limits in different segments of the sectors, which may thereafter be retained or revised.

Trai had on October 17, 2007, recommended a 74 per cent foreign direct investment cap for the Head-end in the Sky (HITS) satellite-based system of TV signal distribution which is currently under review.

The government has proposed no change in the FDI limit in cable TV service or the uplinking of channels from abroad, downlinking of which permits 100 per cent FDI.

At present, 100 per cent FDI is allowed in the speciality sector of the print media and 26 per cent in the news and current affairs sector. There is no proposal to increase this limit.

Trai has recommended a holistic review of the FDI policy in order to bring about a degree of consistency in provisions for various segments of the media, especially broadcasting, keeping in mind the likely convergence in future of the latter with the telecommunication sector, Dasmunshi said.