The Centre may impose a foreign investment cap on the sector, according to an official in the information & broadcasting (I&B) ministry.
The draft policy for satellite radio is finally ready, it is learnt. NEW DELHI: The Centre may impose a foreign investment cap on the sector, according to an official in the information & broadcasting (I&B) ministry.
Currently, in the absence of a policy, up to 100% FDI is allowed.
The official refused to elaborate on the FDI ceiling. A revenue-share model with the government is also expected.
The government is likely to put up the policy draft in the public domain soon.
Till some time ago, the thinking in the government was that FDI in satellite radio sector could be capped at 49%. Now, the I&B ministry is working on rationalisation of FDI across various media segments, and that may have an impact on the level of foreign investment that can be allowed in satellite radio.
Telecom Regulatory Authority of India chairman Nripendra Misra had recently written to the I&B ninistry and the Department of Industrial Policy & Promotion. (DIPP).
In the letter, he had sought uniformity in the FDI level across media segments.
Currently, the FDI ceilings vary from 20% to 100% across media segments like FM radio, cable TV, direct to home (DTH) broadcasting, news channels, entertainment channels, print media (news), print media (non-news), satellite radio, IPTV and mobile TV.
So far, satellite radio was not governed by any guidelines or policy in India. Since there was no policy, up to 100% FDI was allowed in this segment.
While 26% FDI is permitted for TV news channels and newspapers, 20% is allowed in FM radio. For both cable TV and direct to home (DTH) broadcasting, 49% foreign investment is allowed.
Although the policy for satellite radio was expected in July, it took a backseat due to the focus on the proposed Broadcast Bill. The Broadcast Bill may now be introduced during the winter session of Parliament.
At present, Washington DC-headquartered WorldSpace is the only satellite radio operator in India. WorldSpace has been offering its services for over six years in the country.
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