Union information and broadcasting minister Sushma Swaraj has ruled out 100 per cent foreign direct investment (FDI) in any field of broadcasting, including TV software companies. The maximum foreign equity would be permitted in the broadcasting-related ventures is 20 per cent.
The I&B ministry has also put on hold decisions regarding FDI in advertising agencies as the I&B minister is in favour of first discussing the issue with Indian agencies before taking a final decision.
"There is no question of allowing 100 per cent FDI in any field of broadcasting, " union I&B minister, Sushma Swaraj said while talking to Business Standard yesterday, adding , " And that includes TV software companies."
Swaraj was of the opinion that the maximum foreign equity that can be allowed in any broadcasting venture is 20 per cent as was in the case of those Indian companies who are desirous of uplinking from India.
"Since we had proposed in the national agenda for governance a foreign equity of 20 per cent in broadcasting, it would be in the fitness of things to apply the same rule for TV software companies too... my ministry is going to convey this (to the other ministries concerned).
Few months back, while deferring a decision on 13 media proposals, including those of TV-18 (a Tv software company), Reader's Digest, Mudra Communications, Newage Productions, More Communications, Chaitra Leo Burnett Advertising and Srishti Videocorp (a broadcasting company), the FIPB had observed that the chairman of the board may ask the I&B ministry to take a definite stand on such proposals.
In the case of Raghav Bahl-promoted TV-18, the applicant has sought permission from the FIPB to increase the foreign equity component to about 37.5 per cent from about 18 per cent. Srishti Videocorp, which manages the affairs of YES Gujarati channel, has sought permission to offload up to 20 per cent stake to Mauritius-based KSP Holdings.
Swaraj was quite categorical when she said that her ministry is pushing the 20 per cent foreign cap as the broadcast bill prosed to be introduced in the winter session of parliament, would have the 20 per cent foreign cap on all broadcasting ventures.
The minister also said that she has put on hold clearing FDI cases involving the advertising agencies. "I would hold a meeting with Indian advertisers next week and take a final decision after gauging their reaction." Swaraj explained the reason behind the I&B ministry not yet responding to the clarifications sought by the FIPB.
Veteran journalist TVR Shenoy has been nominated as the President/government's nominee to be the third member in the three-member selection commitee for selecting Prasar Bharati board members.
According to government sources, the decision to nominate Shenoy was taken yesterday. The other two members of the selection committee are Vice-President
Krishna Kant and chairman of the Press Council of India, Justice P.B. Sawant. At the time when the Prasar Bharati board board was first constituted during the UF government's regime, noted economist Pai Panaidhikar was the government nominee.
The selection panel for Parasr Bharati would name a person for the board chairman's post as well select a part-time member as one of the board members, A. Padmanabhan, resigned sometime back. Nikhil Charavartty, the first chairman of the Prasar Bharati, had recently expired leaving a vacuum at the top.
