The move is aimed at liberalising the FM industry
The Information and Broadcasting Ministry has cleared 20 per cent FDI (foreign direct investment) for the private FM radio sector but stuck to the ban on news and current affairs programmes.
Current government regulations allow FII (foreign institutional investors) investment of up to 20 per cent of a FM channel's equity capital, while FDI is not permitted.
Information and Broadcasting minister S Jaipal Reddy said his ministry has decided to limit the FDI level at the existing FII cap. The issue will now be referred to the Union cabinet for approval.
However, he said the government was not open to the idea of allowing news and current affairs on private FM radio. "There are certain reservations, especially on the front on cross-media ownership," he said.
Broadcast regulator TRAI had also favoured allowing FDI in private FM radio in its recommendations on 'Licensing Issues Relating to IInd Phase of Private FM Radio Broadcasting'. © 2005 agencyfaqs!