Bloomberg, the US-based data, business news and analysis provider, has finalised its plan for India operations.
Bloomberg LP, US, will charge its wholly-owned Indian subsidiary, to be set up in Mumbai, an annual fee of $3 million (Rs 1.30 crore) in the first year of operation and $1 million (Rs 43.6 lakh) for TV programming and software production business.
The Indian operation, which is expected to initially have 50 employees, will also pay a lumpsum fee of $2 million (Rs 8.72 crore) to the parent for technology collaboration, according to the documents filed by the company with the Foreign Investment Promotion Board (FIPB).
Bloomberg will invest Rs 65 lakh towards the equity capital of the Indian operation which will produce TV programmes and deliver to one and more Indian channels authorised to telecast financial news in English.
The FIPB observed that the proposed annual fee of $ 3 lakh in the first year and $ 1 lakh thereafter “seemed to be on the higher side”.
However, Bloomberg’s application for setting shop in India is expected to get the FIPB nod as 100 per cent foreign direct investment in TV software is automatically allowed in the extant policy.
In addition to television, Bloomberg is into radio services. Bloomberg Television is a 24-hour business and financial news channel that delivers tools for investors via 10 networks in seven languages. It reaches 200 million homes across the globe.
Bloomberg Radioprovides 24-hour business news for New York, New Jersey and Connecticut. It is also available in the US through XM and Sirius satellite radio and is distributed in Singapore and Japan.
It distributes syndicated reports to more than 840 affiliates worldwide in four languages.