The information & broadcasting (I&B) ministry has given its nod to a hike in the foreign direct investment (FDI) limit to 24% from the current 20% in FM radio operations.
Speaking to FE on the sidelines of the Ficci-Frames convention here, I&B secretary Asha Swarup said the proposal has been forwarded to the department of industrial policy & promotion (DIPP), the nodal ministry governing foreign investment.
The I&B ministry is of the view that raising the FDI cap to 24% would not result in giving foreign stakeholders any additional rights under Company Law to the detriment of Indian operators. Some 150 FM radio channels have so far become operational, out of the 266 licences granted.
Earlier, the Telecom Regulatory Authority of India (Trai), which also regulates the broadcasting sector, had recommended that the composite foreign investment limit for FM radio operators who would also like to broadcast news should be raised to 26% in line with that for news and current affairs broadcasters in television.
Further, Trai had suggested that the FDI limit for FM radio operators who do not opt for news broadcasts should be increased to 49%. The government has not yet taken a decision to allow news and current affairs content on FM radio.
As reported by FE earlier, the I&B ministry had approved a proposal to raise the composite foreign investment limit to 74% in broadcast infrastructure & platform services like DTH, teleport, satellite radio and head-end-in-the-sky, which has also been forwarded to DIPP for a final decision.
This has also been done on the recommendation of Trai, which suggested that FDI caps in the telecom and broadcasting sectors be aligned because of the growing convergence of these two areas.