Foreign broadcasters are bracing up for developments on the media front if the Bharatiya Janata Party, which is known for its conservative views comes into power.
The right-wing partys views have been well outlined in its manifesto, which says: While permitting, by licence, the entry of private enterprise in radio and television broadcasting... we will ensure that foreign equity investment in audio-visual media is restricted to 20 per cent.
Putting on a brave face, the South Asia chief executive of a foreign broadcasting house, said: There may be a problem if the BJP starts enforcing its radical thinking...but we firmly believe that there are liberals in that party too.
Acknowledging that there may be more than just a few problems, other foreign broadcasters said that if the BJP translates promises into decisions. The BJP has said it will pitch for mandatory uplinking from India for all satellite channels beaming into India. Its manifesto also says that the party would like to see that the management of all types of the media is in Indian hands. However, the partys radical thinking has not taken many broadcasters by surprise as BJP members in the joint Parliamentary committee set up to look into the Broadcast Bill, had been rooting for a cap on foreign participation at less than 26 per cent.
A few foreign companies have already set in motion a restructuring process by which they qualify as a bona fide Indian company even if the BJP comes to power. We are aware of their ideologies, but it is too early to comment whether the party will actually limit foreign equity at such low levels as it will make us wary of making investments in India, especially as there are very few Indian corporates that can make the sort of investment needed in this sector, said the country head of another player.
K K Modi, Ficci president and a player in the media sector, dubbed the proposed foreign equity cap as irrational and said he had decided to take up cudgels against such moves. I will work hard to ensure that the BJP government does not implement this 20 per cent cap, as it is irrational. If the emphasis is on control, then foreign equity can be allowed up to 49 per cent, he said.
Said media analysts, the ambivalence of the previous governments on policies related to media has put the stopper on additional investments during the last 18 months. Market projections say that from a level of almost no foreign investment in 1990, additional investment levels have shot up to about Rs 1,000 crore till 1997, when on an average a cable TV subscriber receives 30 channels.
A senior executive of a foreign sports channel beaming into India, said: Having some sort of regulation is a positive step, but stringent policies may just hamper investments.
BJP leader L K Advani, in many of his political speeches, has made it clear that his party would review all existing media policies, including the Prasar Bharti Act. Backing him is media analyst Bhaskar Rao of the Centre For Media Studies, who says: Policies have to be made keeping in mind the countrys interest, not what foreign investors feel is good or bad.
