Two-tier FDI cap in media finalised
Now, a 74% uniform cap for non-news media (carriage services) and a 26% cap for news media (content) shall apply. Also, up to 49% FDI in the carriage service providers (like multi-system operators or MSOs, DTH broadcasters, headend-in-the sky or HITS operators, and providers of mobile TV, satellite teleport and IPTV services) will be automatically allowed. But any FDI above 49% will need Foreign Investment Promotion Board’s nod. FE was the first to report this in February.
So far, the FDI caps in media range from 26% to 100% with variable caps of 49% to 74% for carriage service providers. Also, currently there are FDI caps within the permissible foreign investment norms for cable and DTH companies.
The inter-ministerial consultation process on this proposal concluded last week and now the department of industrial policy and promotion (DIPP), the nodal body for FDI caps across sectors, expected to present the matter to the Cabinet shortly, government sources told FE.
“The finance ministry supports the DIPP proposal for allowing 74% FDI in broadcast carriage services and 26% in content services,” a senior DIPP official said.
The move is aimed at getting the required funding. According to the information and broadcasting ministry, DTH, IPTV, mobile TV, HITS and teleport require substantial infrastructure augmentation. “Foreign investment needs to be encouraged to fill the investment gap for infrastructure being built
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