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Govt allows 26% FDI in print media

Tara Shankar Sahay in New Delhi

The Union Cabinet on Tuesday took a major policy decision to allow 26 per cent foreign direct investment in the news and current affairs segment in the Indian media and 74 per cent in the non-news, non-current affairs segment, Information and Broadcasting Minister Sushma Swaraj said.

Briefing reporters about the details of the policy decision, Swaraj pointed out that certain precautions have also been taken to prevent any misuse of the Indian media by foreign investors.

She pointed out that the Indian shareholding should be significantly higher than the 26 percent FDI.

She also said in case the shareholding pattern was changed by the foreign investor, the I&B ministry had to be compulsorily informed.

Apart from that, she said editorial control will have to remain in Indian hands, and also that three-fourths of the editorial posts will have to be filled by Indians.

Referring to apprehensions regarding security considerations of India that have been expressed by a section of the media ownership, Swaraj pointed out that the Cabinet had decided that the credentials of the foreign investor had to be necessarily verified by the government before allowing the investment.

"Information and broadcasting ministry's proposal was accepted by the Cabinet in toto," Parliamentary Affairs Minister Pramod Mahajan told reporters after the Cabinet meeting.

Bharatiya Janata Party, however, declined to comment on the government decision to allow 26 per cent FDI in print media saying it was examining the various aspects of it.

"We are studying the matter in details and will give our views on Wednesday," party spokesman Sunil Shastri said.

No FDI in news agencies

Swaraj, however clarified that there is no change in policy regarding news agencies, which are guided by the 1956 Cabinet resolution.

The 1956 resolution prohibits foreign news agencies from distributing news directly to the India press. Such distribution is allowed only through the Indian news agencies.

No proposal to raise FDI in DTH

Swaraj said there was no proposal to raise the cap of foreign direct investment in Direct-to-Home broadcasting to 49 per cent from the present 20 per cent.

"There is no proposal to increase the FDI cap in DTH to 49 per cent."

As per present guidelines, total foreign equity cannot exceed 49 per cent, and of this, the FDI component has a cap of 20 per cent.

DTH, which was cleared by the government more than a year ago, is yet to become a reality in the country.

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