Secretaries Panel In Favour Of Media Cross-Holdings

The committee of secretaries yesterday decided to recommend that media cross-holdings be allowed between broadcast and newspaper companies.

However, the committee plans to suggest that the proposed 20 per cent ceiling for advertising companies holdings in broadcast companies be scaled down.

The committee, which met yesterday evening, was divided over whether the proposed equity cap for foreign media holdings in Indian broadcast companies should be 49 per cent or scaled down to 26 or even below 26 per cent.

A second meeting will be held to discuss the issue.

The Union cabinet had originally referred the draft bill to govern broadcast companies to a committee headed by the Prime Minister, which broadly cleared the bill. However, that committee in turn asked the committee of secretaries to deliberate on the three contentious issues which have divided not only the government but even the opposition.

 

According to a government secretary, the committee was initially opposed against allowing media cross-holdings. But there was counter-pressure from the industry ministry and some influential leaders of the ruling United Front.

Industry minister Murasoli Maran is connected with a Chennai-based broadcast company, which is promoted by a South-based newspaper company.

Media companies like The Hindustan Times and The Times of India group and several others which have begun broadcasting have also lobbied strongly for allowing media cross- ownership.

As far as the equity cap for foreign media companies is concerned, pressure is mounting to keep it at a much lower level than 49 per cent. The main argument advanced for this is that no major country permits foreign holdings in its media companies.

The committee is opposed to allowing advertising companies to have any major say in broadcast companies, as they could influence the content of the programmes.

The secretaries thought holding 20 per cent equity in a broadcast company would be enough for advertising firms to influence programmes.

The recommendations of the committee of secretaries will be taken up by the Union cabinet before being presented to Parliament. Therefore, the various lobbies are actively advocating their case to various political parties. The bill itself is likely to take another six months to be passed, said a senior government official.