FM Radio Panel Plays FDI Tune, Wants Licensing Reprogrammed

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Although a formal report is yet to be out, the expert committee on FM radio
has reached a broad consensus on recommending a revision in the foreign
investment norms and lifting restriction on news broadcast. The committee,
headed by Ficci secretary general Amit Mitra, is also in favour of bidding
for one-time entry fee for the second phase of private FM.

Significantly, the view of the committee is that foreign investment norms in
FM radio should be on par with print and television. In both print (news and
current affairs) and TV news channels uplinking from India, foreign direct
investment (FDI) up to 26 per cent is allowed. In private FM, only up to 20
per cent foreign institutional investment (FII) is permitted. If the expert
committee recommendations are accep-ted by the government, FDI up to 26 per
cent could be permitted in private FM radio ventures too.

Also, while news and current affairs programmes cannot be beamed on private
FM stations now, the committee is likely to recommend to the government that
such a restriction is illogical. In sensitive areas such as Srinagar and the
north-east, there may be some cap on beaming news, however, with certain
members having reservation about allowing news in private FM. The existing
private FM players have been lobbying hard with the government to permit news. 

Source:
http://www.financialexpress.com/fe_full_story.php?content_id=42261