Click to play videoNew Delhi: Telecom Regulatory Authority of India (TRAI) has suggested hiking foreign investment limits in FM radio, TV news channels and DTH.
It has proposed hiking the limit in FM radio to 49 per cent from the current 20%. It also wants the limit in news channels to 74 per cent from the current 26 per cent.
Foreign investment cap in DTH and mobile television services has been proposed at 74 per cent, up from the present 49 per cent limit.
''Foreign investments have an important role as a source of funding in the development of the sector. Foreign investments have other benefits also such as bringing in new technology, international best practices, and access to export markets,'' a statement said.
However, the extent of foreign investment is also conditioned by considerations such as national security, preserving socio-cultural fabric of the country, protection of domestic industry among others, it added.
The Ministry of Information and Broadcasting had sought recommendations of the authority on foreign investment limits for various segments of broadcasting sector on December 11, 2007.
In line with its consultative approach, the Authority issued a Consultation Paper on March 3 this year for comments from the stakeholders before giving its recommendations to the Government on foreign investment limits for various segments of broadcasting sector.
For Mobile Television, where no policy exists at the moment, TRAI proposes 74 per cent foreign investment.
The percentage of foreign investment includes foreign direct investment (FDI) and foreign institutional investment (FII). The recommendations also cover the procedure for approval and suggest that within the composite foreign investment limit of 74 per cent (wherever applicable) for carriage services, foreign investments up to 49 per cent may be permitted under the automatic route.
Beyond this, FIPB approval would be required as prescribed for the telecom sector.
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