Government sources said the ministry is planning to allow up to 74 per cent foreign equity in advertisement ventures which in the case of films may go up to 100 per cent and the Cabinet note to that effect has already been sent to the ministry.

"It is possible that the Cabinet may give its approval on the ministry's proposal for automatic approval in these two sectors before the next Foreign Investment Promotion Board (FIPB) meeting," sources added.

Once the guidelines is laid out then proposals envisaging foreign investment in these sectors do not have to referred to the I&B ministry by the FIPB for clearance on a case-to-case basis, sources said.

Sources said the ministry has recently intimated the FIPB that the clear-cut guideline regarding FDI in advertisement and films is awaited clearance from the Cabinet.

Significantly, quite a fewproposals including that of Chaitra Leo Barnett, RK Swamy Associates, Mudra Communication, Sony Films and Entertainment are pending with the FIPB and have been so far put on hold owing to the absence of any clear policy guideline.

The ministry under the previous minister Sushma Swaraj had decided to allow 100 per cent foreign equity in green-field advertisement projects and up to 74 per cent in existing joint ventures.

With regard to film companies, I&B minister Pramod Mahajan had earlier stated that he is in-principle not against FDI in films but, would like to see the companies bringing in investment in terms of foreign exchange rather than raising debt from domestic banks and financial institutions.

The ministry, however, wants major investment from media companies both domestic as well as foreign in setting up studios and other facilities, which would enable the country to compete with Hong Kong and Singapore and emerge as the media capital of South Asia.

The ministry has adopted a favourablestand with regard to software companies. The ministry had earlier decided to allow up to 74 per cent foreign equity in such companies.