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New channel applications after Trai view on FDI

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Press Trust Of India Mumbai
Last Updated : Jan 21 2013 | 3:13 AM IST

The Information and Broadcasting Ministry has restarted issuing licences for new television channels, but it will not accept any fresh applications until the Telecom Regulatory Authority of India's (Trai's) recommendations on FDI are released, Ministry Secretary Raghu Menon said.

The government would consider fresh applications only after Trai releases its recommendations on foreign direct investment policy on broadcasting. “Trai is working on some points we referred to them on the FDI policy. Meanwhile, we thought it is not fair to keep the applicants waiting,” Menon noted.

The government had stopped issuing licences to launch new television channels a few years back. Forced by the limited availability of radio waves for the industry, it also felt that many of the still pending, nearly 500 applications are not serious players. Hence it wanted to keep away non-serious/fly-by night players from the market.

The regulator is studying about the existing disparity in FDI limits in different sections of the media sector. At present,100 per cent FDI is allowed in non-news channels, while it is 26 per cent each for news and current affairs broadcasters. The government is looking to reduce these disparities, Menon added. “Trai is studying the disparity in FDI limits currently applicable to different sections of the media industry and once the recommendations are announced, we would consider fresh applications,” he said.

On the FM phase III policy, Menon said the committee of secretaries would meet to finalise the policy by this month-end.

“After finalising the policy, it will be forwarded to Cabinet next month,” he said, adding Phase III will see the addition of 700 FM stations to the existing 200-odd private FM stations.

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