Government mulls hiking FDI cap to 49% in media

The government is looking to rationalise the foreign direct investment (FDI) policy and open up the media sector , say sources. The FDI cap for print media as well as for news broadcast may be hiked to 49 percent.

However, there is no clarity on whether this will be done under the automatic route, though that would seem very unlikely.

The policy that is being discussed internally at the moment between various government departments is whether there could be a cap on the equity that the largest Indian shareholder has to hold. So, while it will hike the FDI cap, the control of this joint venture company in print media or in news broadcast, will have to be Indian.

The proposal has been discussed with the Law Ministry and it has given its in-principle approval. The Department of Industrial Policy and Promotion (DIPP) has been holding various consultations with all kind of experts, so, it is perhaps a matter of days before we see a policy announcement.