New Delhi: In a major decision to liberalise the broadcasting sector, the government Friday decided to raise the cap on foreign investment from 49 percent to 74 percent in many fields but has decided to retain the 26 percent cap in the TV news channels and FM radio.
The Cabinet Committee on Economic Affairs gave its nod to the proposal of the Department of Industrial Policy & Promotion.
According to the proposal, the FDI has raised for broadcast service providers like teleports, direct to home (DTH) and cable networks (multi-system-operators that are undertaking upgradation of networks towards digitalization and addressability) as well as for Mobile TVs, a statement said.
Up to 49 percent would be permitted under the automatic route and beyond that up to 74 percent would be permitted under the government route.
With regard to headend-in-the sky broadcasting service, the existing limit of 74 percent foreign investment would continue.
With regard to cable networks (other multi-system-operators) which are not undertaking digitalization, the existing limit of 49 percent foreign investment under the automatic route, would continue, the statement said.
In the case of 'News & Current Affairs' TV channels/FM Radio, the existing limit of 26 percent foreign investment, under the government route, would continue.
"For up-linking of Non-'News & Current Affairs' TV Channels / Down-linking of TV Channels, the existing policy of 100 percent foreign investment, through the government route, would continue," the statement said.