Increasing the foreign direct investment (FDI) cap in media is likely to take more time, as the Telecom Regulatory Authority of India (TRAI), which is to give its views on FM radio and television, has different priorities at the moment.
“We have to take a decision on telecom spectrum pricing and expanding telecom in the North-Eastern States on an urgent basis. Only then can we look at other issues, and allowing FDI in media is just one of them,” a senior TRAI official told Business Line .
According to the Arvind Mayaram panel’s recommendations, FDI caps in all three sub-sectors – print, television and FM radio – should be raised from 26 per cent to 49 per cent.
The Information and Broadcasting Ministry has sought TRAI’s views on the Mayaram panel’s recommendations. Divergent views had emerged among various industry stakeholders after the Ministry consulted them. Also, certain industry associations sought more time for comments.
Buy more time
The I&B Ministry’s decision to turn to TRAI for its opinion is also being interpreted by many as a ploy to buy more time, as there are divergent views within the industry.
“The decision to hand over the matter to TRAI would give the I&B Ministry more time to negotiate with various interest groups,” another Government official pointed out.
The TRAI official refused to give his views on the issue, saying that the authority was yet to examine the I&B Ministry note.
“We received the I&B Ministry’s note on the FDI cap issue late last week. But there has been no time to examine it. We will look at it after about a month when the immediate issues facing the Authority are resolved,” the official said.
The Home Ministry had earlier hinted that allowing greater foreign ownership in Indian media may lead to foreign players meddling in the country’s domestic affairs and politics.
The I&B has also sought the Press Council of India’s views on the matter.