News channels get `last' extension of 6 months

The government today gave the "last" extension of six months to news and current affairs channels to raise the equity base of the Indian partner to 51% as required by the policy on uplinking.

"The policy requires that news channels adhere to a cap of 26% FDI, and the Indian entity to have not less than 51%. Many existing news channels have not been able to conform to this changed system for a variety of reasons," I&B minister S Jaipal Reddy said after a cabinet meeting.

He said the cabinet "gave its last extension of six months from now (till
September 2005) to show that its structural equity conforms to this regime."

"There will be no further extensions," Reddy said.

The decision for extension of the deadline will give time to the ministry to finalise the proposal to review the uplinking guidelines, Reddy added.