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Indian M&E sector attracts FDI of Rs 132 bn in last decade
indiantelevision.com Team
NEW DELHI: The Indian media and entertainment industry has attracted foreign direct investment (FDI) of Rs 132.02 billion between April 2000 and February 2012, according to a source in the Information and Broadcasting ministry.
This comprises a mere 1.77 per cent of the total FDI inflow into the country during this period, the source said, adding that the proposed hike in the cap would help the sector in a big way to attract foreign capital.
The Telecom Regulatory Authority of India (Trai) has already forwarded to the government its proposal for a relaxation in the FDI inflows which is under the consideration of the government.
FDI in the broadcasting sector is governed by the FDI policy issued by the Department of Industrial Policy and Promotion (DIPP).
The source, however, said a balance needs to be struck to ensure that the domestic sector should not be allowed to suffer because of enhanced FDI into the broadcasting sector.
The FDI in teleport hubs, direct-to-home, cable networks, and multi-system networks are proposed to be raised from the present 49 per cent to 74 per cent if they undertake to upgrade and digitise their systems with addressability. If this is not done, then the limit will remain at 49 per cent.
The FDI for uplinking of news TV channels will remain at 26 per cent, while it will remain at 100 per cent for uplinking of non-news channels and for dowlinking of TV channels.
In the case of mobile television, there is no policy for FDI at present but this is expected to be set at 74 per cent.
Equity up to 49 per cent will be by the automatic route and that beyond 49 per cent and up to 74 per cent will be through the government route.
The route of FDI for FM Radio, and uplinking and downlinking of TV channels will be through the government.
Meanwhile, there is no proposal to increase the foreign participation in the print media which remains at 26 per cent for publishing newspapers or facsimile editions. The government has allowed100 per cent for speciality/technical/scientific magazines in the non-news category.
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