The Cabinet on Friday provided an engine to fund the digitisation drive by raising the foreign direct investment (FDI) limit in broadcast services to 74 per cent across the board. The department of industrial policy and promotion had proposed the FDI limit in broadcast carriage services providers, including Direct-to-Home (DTH), Head-end in the Sky (HITS) and cable television must be uniform. At present, 49 per cent FDI is allowed in cable TV and DTH, while it is 74 per cent in HITS.
The move was strongly supported by the industry. However, some operators say the cross-holding restrictions, which do not permit a broadcast company to take more than 20 per cent stake in broadcast service providers in India, might deter investments, especially in areas like DTH.
Prasar Bharti rejig
The government will rejig loans given to Prasar Bharti. The Cabinet also decided that government non-plan support to the broadcaster will be made available for meeting expenses towards salary and related expenses during the five-year period from this financial year.