'Govt open to review of FDI cap in media'

Information and broadcasting minister S Jaipal Reddy today said the government was open to the idea of reviewing the foreign investment caps in the media and entertainment sector at an appropriate time, though there was no immediate proposal for its consideration.

"It is not a frozen thing. Evaluation is a continuous process," Reddy told the Economic Editors Conference when asked whether the government could further liberalise foreign investment caps in the media and entertainment sector. He, however, made it clear that there were no efforts in this direction at present.

The government has already liberalised its foreign investment policy in various segments of the broadcasting and entertainment sector. This includes allowing 20 per cent foreign direct investment in FM radio and FII investment in print and electronic media.

As per the current guidelines, 26 per cent foreign direct investment (FDI) is allowed in news and current affairs, 20 per cent in FM radio, 20 per cent in direct-to-home venture, while foreign investment up to 100 per cent is allowed in Indian entities publishing scientific/ technical and speciality magazines/ periodicals/journals.

Reddy said the Anil Ambani-promoted direct to home (DTH) venture, Reliance Bluemagic, has been vetted by the information and broadcasting ministry and the proposal has been forwarded for inter-ministerial consultation.

"The information and broadcasting ministry has prima facie not found anything objectionable in the venture and has moved it for inter-ministerial consultation," he said.

He added that the inter-ministerial consultation would look at various aspects of the proposal, pointing out that it would be vetted by the finance, company affairs, law and other ministries.

Currently, the country has one private DTH operator in Zee-promoted Dish TV while public broadcaster Prasar Bharati runs a free-to-air platform.