New Delhi, Sept 7: The union government has decided to put a 74 per cent foreign equity cap for setting up satellite uplinking facility in the country. In an interview to The Financial Express, union information and broadcasting minister Sushma Swaraj said opening up investment in earth stations for private participation would comprise the second phase of the current uplinking policy adopted by the government.The first phase, which involved allowing Indian broadcasters uplinking through VSNL, is already over with as many as eight Indian channels with maximum of 20 per cent foreign equity on the verge of receiving formal permission.
For Swaraj there is a strong reason to encourage investment in setting up such infrastructure for broadcasting. "Without offering the channels proper facilities it would be illogical on our part to make it mandatory for the channels to uplink from the country," Swaraj stated.
The ministry has decided to make uplinking from the country's mandatory for all channels in thethird phase of the uplinking policy which is to coincide with the Broadcasting Bill. The Bill will be definitely taken up in the next session of Parliament, according to Swaraj.
With such an announcement, Swaraj has been successful in sending a strong signal to the foreign investors eyeing the domestic broadcasting sector. The state of limbo that has been prevailing with uncertainty hanging on the much-awaited legislation seems to be getting cleared with Swaraj acting at a fast pace on critical policy decisions.
The minister has decided to allow 74 per cent foreign equity in television software companies. The onus now lies with the I&B secretary to send the pending proposals on a case-by-case basis to the Foreign Investment Promotion Board (FIPB). The board had approved four proposals on Saturday.
"We will, however, restrict foreign equity up to 20 per cent in broadcasting," she added.
On codes for advertising and programming, Sushma said the ministry is about to finalise these for foreign channelsand for Indian channels, it will be the same as the ones applicable to Doordarshan.
Till the Broadcasting Regulatory Authority, as proposed by the Broadcasting Bill, is set up, the Broadcasting Council (as proposed by the Prasar Bharati Amendment Ordinance 1998) would keep a watch on them, according to her.
In case the channels violate the codes, either they would be tried under the country's laws or their licences for uplinking would be cancelled, the minister said.
On the subject of foreign equity in the advertising sector, Sushma said she is yet to formulate the policy in this regard. "Whether we will allow 100 per cent foreign equity of not would only be decided once I hold a meeting with the advertising agencies," she said.
"I have twice fixed up meetings with the agencies, however, it could not materialise," she added. "The final policy on the foreign equity in the sector will be formulated only when the pros and cons are examined," Sushma stated.
When asked whether the ministry would amendthe Cable Networks Act, she said the matter will be updated and taken up with the Broadcasting Bill in the next session of Parliament.
Speaking on Prasar Bharati, Swaraj said the ministry has asked the Selection Committee to appoint five key members to the corporation's board. The five members include the chief executive officer, chairman, member (finance), member (personnel) and one non-permanent member of the board.
The minister also said the ministry is to initiate the process of setting up the Broadcasting Council next week. The council would be similar to the Press Council and consist of 10 members and four MPs from Lok Sabha and Rajya Sabha.
Sushma said she has recommended four new DD channels. She feels that DD should get into "narrowcasting" along with broadcasting. "Through these channels we would like to take the research laboratories to the field for the farmers and combine education and entertainment for the younger people," she stated.
Copyright © 1998 Indian Express Newspapers(Bombay) Ltd.