News aggregators, news agencies which supply information to digital media firms and companies uploading news and current affairs on websites will have to comply with the 26% foreign investment cap, the government said on Friday.
News aggregators, news agencies which supply information to digital media firms and companies uploading news and current affairs on websites will have to comply with the 26% foreign investment cap, the government said on Friday.
This will be applicable to those who upload or stream news and current affairs on websites, apps, or other platforms.
News aggregators which, using software/web applications, aggregates news content from various sources, such as news websites, blogs, podcasts, video blogs, in one location along with news agencies which gathers, writes and distributes/transmits news, directly or indirectly, to digital media entities will also come under its purview.
These companies "would be required to align their FDI to the 26% level with the approval of the central government, within one year from the date of issue of this clarification", the Department for Promotion of Industry and Internal Trade (DPIIT) said.
26% FDI will be applicable only to digital media entities registered or located in India. The government's objective is to create a self-reliant and accountable digital news media ecosystem.
All digital media news institutions have been given one year's time to meet the shareholding requirements.
These are the advantages:
1. Regulatory oversight can be created.
2. The chief executive officer (CEO) must be an Indian citizen.
3. The entity shall be required to obtain security clearance of all foreign personnel likely to be deployed for more than 60 days in a year by way of appointment, contract or consultancy or in any other capacity for functioning of the entity prior to their deployment.
4. There will be control over Chinese and foreign digital media.
5. Indian interests will get priority. True FDI investments that are not prejudicial to Indian interests will be approved.
Till now, all these scales were in broadcast media. Now it will be in digital as well.
This provides a level-playing field for Indian news publishers on digital media with those funded by foreigners and it would bring parity between FDI limits in print and in digital media entities.
As internet data is being used very much, there is a real danger of fake news and information warfare, especially from neighboring countries. The US is being accused of influencing elections. These policy decisions will help in removing such threats.
The Centre on Friday also announced that the I&B ministry "will be considering" to extend certain benefits like issuing PIB cards to journalists from the digital media in the "near future", which are currently available to traditional media (print and TV).
PIB accreditation for its reporters, cameramen, videographers will enable them with "better first-hand information", said the Centre while providing access including participation in official press conferences and such other interactions.
It will also make them entitled to digital advertisements through the Bureau of Outreach and Communication of the government.
The Centre, in a press note, said that "pursuant to the decision of the Central Government vide Press Note No. 4/2019 of Department for Promotion of Industry and Internal Trade (DPIIT) allowing 26% FDI under Government approval route on Uploading/Streaming of Current Affairs and News through Digital Media, the Ministry of Information and Broadcasting will be considering in the near future to extend the following benefits, presently available to traditional media (print and TV), to such entities also."
It will also make the PIB cardholders of such digital ventures entitled to CGHS benefits and concessional rail fare as per the extant procedure.
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