[cr-india] No move to increase foreign direct investment, permit news to private FM radio in India.

[sakthi vel]

No move to increase foreign direct investment, permit
news to private FM radio in India.

There is no proposal to increase foreign direct
investment in FM radio, information and broadcasting
minister Priyaranjan Dasmunsi clarified today.

He told the Rajya Sabha in reply to a question that
there was also no proposal at present to allow
broadcast of news and current affairs to private FM
broadcasters. Only the FM channels operated by All
India Radio are permitted to broadcast news and
current affairs programmes.

The FDI in private FM radio is currently capped at 20
per cent. According to the rules, the total foreign
investment including FDI by Overseas Corporate Bodies,
non-resident Indians and people of Indian origin etc.,
portfolio investment by foreign institutional
investors (within limits prescribed by the Reserve
Bank of India) and borrowings, if these carry
conversion options, shall not exceed 20 per cent of
the paid up equity in the applicant company.  


Meanwhile, official sources said licences for more
than 90 more FM stations in Class ‘C’ and ‘D’ cities
for which bids were not received during Phase II are
to be auctioned soon, adding to the 57 private FM
stations that are already operational. 

Apart from this, the government will also take a
decision shortly on 35 more applications for operating
community radio stations, apart from the 60 letters of
intent already issued. Community radio is now set to
open to non profit and voluntary organisations besides
educational institutions. 

Official sources indicated that the date of auction
for the FM stations will be decided after the
information and broadcasting ministry reviews the
operation of the 250 radio stations which are expected
to go on air by the year end. 

A Parliamentary Standing Committee earlier this month
urged the government to create a hassle-free
environment for the private broadcasters to encourage
more entrepreneurs to enter the field of private FM
broadcasting. The Standing Committee for information
technology also wanted prompt action to be taken for
allotment of the remaining channels so that more new
players are encouraged to take up private
broadcasting. 

In its report on budgetary demands presented to
Parliament, the Committee has noted that permission
has so far been given to 266 private FM radio stations
of which 58 channels were operationalised by 29 March
last. A total of 97 could not be allotted as the bids
were low, and these would be notified again.

An amount of Rs 11.45 billion was collected as
one-time entry fee from the Phase II licensees and Rs
277.9 million was realized as annual fee during
2006-2007 till 21 February this year. An amount of Rs
10 million has been allocated in the annual plan for
co-location of five new towers. 

Expressing concern about the unsatisfactory progress
of expansion of All India Radio’s own FM network, the
Committee noted that an amount of only Rs 221.2
million had been spent out of a total allocation of Rs
1.55 billion from 2002-2003 to 2005-2006. The total
outlay for expansion of FM services of All India Radio
is Rs 3.28 billion.

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Source: http://indiantelevision.com/headlines/y2k7/may/may228.php

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   Jaisakthivel 
  Chennai, India. 

     
   
   



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