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The Telecom Regulatory Authority of India (Trai) on Thursday said it was in favour of increasing the foreign direct investment (FDI) limit in news television and private FM radio broadcasting to 49 per cent from 26 per cent.
The information and broadcasting ministry had asked Trai’s suggestions on a proposal to raise the limits.
Trai has proposed raising FDI in distribution and carriage services such as direct-to-home television, cable networks and mobile TV to 100 per cent from 74 per cent through the Foreign Investment Promotion Board route.
Trai’s recommendation comes a day after the ministry asked the regulator to expedite filing its comments on recommendations made by a finance ministry panel, headed by Economic Affairs Secretary Aravind Mayaram, on FDI caps across sectors. The panel, set up by the finance ministry, had mooted FDI through the automatic route, Trai said that it is in favour of the investment being routed through the Foreign Investment Promotion Board (FIPB).
“The Authority recommends that the government should ensure that the process of FIPB approval is streamlined and the requests for FDI are processed in a time-bound manner. Since content can be sensitive in nature, it is appropriate to have checks and balances at different stages viz. to screen for any potential hazard from a national perspective. In view of these considerations, the status quo ought to be maintained regarding the route for approval of any FDI,” Trai said in its recommendations.
Currently, only 26 per cent FDI is allowed in uplinking of news and current affairs channels and FM radio services.
