Jun. 29 – The Indian government is contemplating raising the foreign direct investment (FDI) cap on FM radio broadcasters and direct-to-home TV service providers.
The FDI limit on broadcasters is to be changed from 20 percent to 24 percent and 49 percent to 74 percent for television service providers, according to the proposal submitted by The Department of Industrial Policy and Promotion (DIPP).
The DIPP’s proposal complies with the new rules governing direct and indirect foreign investment. Recently, the information and broadcasting ministry had approved the clearance of 22 new TV channels.
DIPP also added that the FDI regime for ISPs without gateways be made easier. According to The Economic Times, 100 percent FDI is allowed, but Foreign Investment Promotion Board (FIPB) approval is needed beyond 49 percent.
However, ISPs will need to divest 26 percent of their equity in an Indian public offering if they want to be listed abroad. The DIPP proposal wants that the FDI cap be raised to 74 percent; doing away with the difference between ISPs with and without gateways.
