NEW DELHI, May 10: The Draft Broadcast Bill is in favour of allowing newspaper houses to have an equity stake of upto 24 per cent in more than one electronic media venture. The Draft Bill also favours withdrawal of territorial restrictions for direct-to-home (DTH) service providers. With the current changes accommodated in the Draft, it appears to uphold the Union Information and Broadcasting Minister Jaipal Reddy's assurance of lessening bureaucratic control on the media. The Draft Broadcast Bill, which is likely to be placed before the parliament next week, says, proprietors of newspapers who have a stake of over five per cent, but less than 20 per cent in a "body corporate" and not controlling such a body will be allowed limited participation of five per cent equity in other media ventures. However, the draft is ambiguous on definition of such a body. The Draft Broadcast Bill also mentions that a person who is a licence-holder and a participant with more than five percent, but less than 20 per cent equity and not controlling a "body corporate" running a national newspaper, can hold more than five per cent in another media company.

Even though the original wording of the Broadcast Bill is not too clear, legal experts say that it can be interpreted to mean that the newspaper houses may be allowed to hold a total stake of 24 per cent in two separate electronic media ventures.

However, the Broadcast Bill specifies that a proprietor of a newspaper can neither be a participant with more than 20 per cent interest in, nor control, a body corporate which is the holder of a licence under the proposed Act.

The Broadcast Bill also says that a licence-holder under the proposed Act should be a participant with more than 20 per cent control in a body corporate which runs a newspaper.

The Broadcast Bill also tends to offer greater freedom for direct-to-home operators.

The Broadcast Bill proposes that direct-to-home licensees will be allowed to provide services all over the country and will not be restricted territorially, as suggested in earlier cabinet notes.

The Draft Broadcast Bill has provisions to control the number of local delivery service providers and direct-to-home providers by limiting the number of licensees.

Cable service providers and direct-to-home operators will also be allowed to commission their own programming, the Draft Broadcast Bill adds.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.