Money > Budget > Budget News & Analysis FEBRUARY 19, 2002 | 18:50 IST    rediff.com 


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PMO moots 26% FDI in print media, except dailies

In a major policy shift, the Prime Minister's Office has recommended that 26 per cent foreign direct investment be allowed in all segments of the print media, barring news dailies, reports Web site indiabiznews.

The PMO suggestion is likely to be taken up for consideration by the Cabinet Committee on Economic Affairs soon, the Web site said.

The entry to foreign players, although limited, is being viewed as a move forward towards the logical step of allowing foreign participation in newspapers. The sector had so far remained untouched by the government's liberalisation policy.

With the PMO recommending a limited presence of foreign entities in the print media sector, the 100 per cent control of Indian companies over the sector is set to go.

A parliamentary committee looking into the issue is said to have been working on an alternate draft, which was to include a proposal for allowing 26 per cent foreign equity strictly under Indian editorial control. The PMO has apparently acted on the committee's revised draft.

The parliamentary panel in its first draft report opposed allowing foreign newspapers and periodicals dealing with news and current affairs to bring out Indian editions or foreign shareholding in any form in the sector.

The government is now likely to take a view on FDI in print media or any related issue like foreign, NRI investment in the sector and allowing of foreign medical and technical journals into the country.

However, the PMO's proposal shows that a section of the powerful newspaper barons' lobby has managed to hold its own and the management of magazines have had their voice heard.

FDI in print media has been under debate for a decade. But the debate intensified during the past year. The information and broadcasting ministry had over a year ago suggested opening up the sector to FDI. I&B Minister Sushma Swaraj had at one time said that the ministry was considering such a proposal, but retracted her statement soon after, as the issue became controversial with English dailies coming out against the proposed policy change.

However, some media barons feel that the Indian media need not fear the entry of foreign media if it were sure about itself.

A group of journalists earlier last year had started a signature campaign to petition the government to press for entry of foreign media into the country. According to this group of journalists, about 80 per cent of Indian journalists were in favour of the entry of foreign print media into India and most of them have readily come forward to sign the petition.

Political parties have been divided on allowing foreign direct investment in print media, with most opposing the entry of foreign players into the sector.

Sources said that opinion on the issue was divided within the Congress, with one side favouring 26 per cent equity and the other opposing it. Some parties, including the Telegu Desam Party and the Left were completely against allowing FDI in the print media sector.

India's print media policy had been framed in 1955. The policy was primarily a Cabinet decision that disallowed foreign investment or any role of foreign players in this segment.

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