A Quick Glance At The Fdi Reforms In The Broadcasting Sector In India
Encouraging economic growth, the government of India is liberalizing Foreign Direct Investment (FDI) in the broadcasting sector
. Many countries are becoming more forward thinking in rolling out new measures or extending current favors to help the economic growth.
Heres a quick glance at the FDI reforms in the broadcasting sector
The Cabinet Committee on Economic Affairs (CCEA) has liberalized the foreign investment policy for entities operating in the broadcasting sector, after reviewing the foreign investment proposal.
Teleports: Direct to Home (DTH) and Cable Networks (National, State and District Level Multi-System Operators - MSOs undertaking network digitalization and addressability).The FDI limit has been increased from 49 % to 74 % with the following provisions:
o An investment of up to 49 percent is allowed under automatic route.
o Investment beyond 49 percent and up to 74 percent is allowed under the Government route.
Mobile TV: Though there is no dispensation for the Mobile TV category, the FDI limit has been set at 74 % under the following conditions:
o An investment of up to 49 percent is allowed under automatic route.
o Investment beyond 49 percent and up to 74 percent is allowed under the Government route.
Headend-In-The Sky (HITS) Broadcasting Service: The current threshold of up to 49 percent through the automatic route and beyond 49 up to 74 percent through government route will continue to exist.
o With regard to cable networks including other Multi System Operators (MSOs) that are not undertaking network digitalization and addressability and local authorities, the existing limit of 49 percent under automatic route will remain the same.
o The current threshold of up to 26 percent via Government route for up-linking of 'News & Current Affairs' Television channels or FM Radio will continue to exist; and the current threshold of 100 percent FDI for up-linking of Non-News & Current Affairs Television channels via Government route will continue to exist.
Foreign investors investing in businesses involved in the above mentioned services must keep an eye out for the above to be enacted.
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