The Government plans to seek the Cabinet's approval for a proposal to permit 26 per cent foreign direct investment (FDI) in the print media for periodicals including weeklies, fortnightlies and monthlies. If approved, this would end a moratorium imposed 47 years ago on FDI in print media by a 1955 Cabinet Resolution.
The restriction on FDI is likely to remain for dailies in the print media, which will continue to get the protection it has been enjoying so far.
According to highly placed source, the Ministry of Information and Broadcasting (I&B) has been asked to prepare a detailed note on the subject which will be placed before the Cabinet Committee on Economic Affairs (CCEA) for a final decision.
Simultaneously, the Government is also planning to allow 100 per cent FDI in the advertising sector. The FDI cap in this sector now is 74 per cent, under the Reserve Bank of India's (RBI) automatic route.
The proposed FDI policy will spell out guidelines for foreign institutional investors, minimum capitalisation norms, editorial control, management control and voting rights of the minority shareholders. According to sources, there are likely to be two separate set of guidelines for English and vernacular publications.
Source: Business Line