Source: The Hindu Business Line, Nov 11, 2019
New Delhi: Flooded with concerns from media companies on the recent imposition of a 26 per cent limit on foreign direct investment (FDI) through the government route in the digital media sector, the Centre is looking at coming up with a clear decision on how such companies that already have a foreign share holding above 26 per cent should be treated.
“The DPIIT has received numerous queries on the implications of the FDI limit of 26 per cent in digital media. It is closely examining its options regarding the fate of the companies that already have FDI greater than 26 per cent. Most other concerns need only some clarifications and explanations,” an official told BusinessLine.
The Information and Broadcasting Ministry has sent its comments on the matter to the DPIIT which is now being examined by it. “A decision could be taken based on a common understanding of the matter and in consultation with other key Ministries such as Finance,” the official said.
In August this year, the DPIIT came up with a Press Note permitting 26 per cent FDI under government route for uploading/streaming of news and current affairs through digital media. This came as a jolt for media companies as prior to that FDI caps existed only for the Indian print media at 26 per cent and news broadcast television companies at 49 per cent and there was no such cap on digital media.