Foreign investment limit in private FM radio is likely to be increased from the current level of 20% to 24%.
I&B secy says her ministry has sent a proposal on this to the DIPP
MUMBAI: Foreign investment limit in private FM radio is likely to be increased from the current level of 20% to 24%.
Information and broadcasting (I&B) ministry secretary Asha Swaroop told DNA Money that the I&B ministry has sent a proposal on raising the FDI limit to the commerce ministry’s Department of Industrial Policy & Promotion (DIPP), the final authority on FDI-related matters.
Recently, the Telecom Regulatory Authority of India (Trai) suggested raising the foreign equity limit in FM stations airing news and current affairs programmes to 26% and to 49% for entertainment stations.
Swaroop, who was speaking on the sidelines of media conference FRAMES organised by business chamber Ficci on Tuesday, said the government was yet to take a decision on permitting news and current affairs content on private FM.
However, industry insiders say the government will finally allow news channels to go on air, but only gradually. To start with, the government may allow only that news to be aired that come from certain authenticated sources and may open up the segment completely much later.
News and current affairs has been a sensitive matter for the government as FM radio is very local in nature and monitoring the medium could be a problem. At present, only All India Radio (AIR) is allowed to air news and current affairs programmes.
The government is planning to start the tender process for the third phase of private FM radio around the middle of this year. It is also learnt that bids for the remaining radio stations from the second phase would be clubbed with the third.
Bidding for remaining stations from the second phase of FM radio privatisation got delayed due to some players moving court against the government. The government has filed its appeal in the Delhi High Court on the case.
At the media conclave, the I&B secretary also spoke on the issue of some films being blacked out in the recent times due to political pressure and law and order problems. Before Swaroop’s address, film-maker Yash Chopra sought government intervention on the matter of films being stopped in some states after Censor Board clearances.
Aja Nachle, Jodha Akbar and Taare Zameen Par are among the recent films which were stopped in some states citing law and order problem.
Swaroop said I&B ministry is working with the ministry of home affairs to tackle the problem.
On checking piracy in the audio and video industry, Swaroop said the draft legislation for the Optical Disc Act may introduce inspector raj, which is not desirable. “Such a law does not fit into the liberalised regime of India,” she said. Rather, other measures like multiple distribution platforms for films could be adopted to check piracy.
Among the new initiatives of the government, a National Museum of Moving Images is being planned in Mumbai. However, on the content side, Swaroop said broadcasters should focus on innovative children’s programmes. “As children spend so much time in front of the TV, the content should be appropriate.”
The government is waiting for the recommendation of Trai before allowing political parties to float TV channels. There are several requests pending with the government for launching TV channels.
m_nivedita@dnaindia.net
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