FDI in cable, DTH raised to 100%

Direct-to-home companies and cable firms can now have 100 per cent foreign direct investment, according to the latest FDI reforms announced by the commerce and industry ministry. Earlier, the FDI limit for the cable and DTH sector was 74 per cent, 49 per cent through the direct route and beyond that companies had to seek the government approval.

The ministry has relaxed FDI rules in non-news media as well. While 100 per cent FDI was allowed in the sector earlier, it will now be allowed through the automated route. News media and FM radio are now allowed up to 49 per cent FDI under the government route.

Sudhanshu Vats, group CEO, Viacom18, and chairman, CII national committee, media and entertainment, said, "This seems to be an excellent way to flag off Diwali celebrations in the country. Tuesday's announcement emphasises the need to align more industries to the automatic route of FDI, over the government-regulated route, to enhance ease of raising capital. The industry will witness accelerated investor interest."

Currently, companies like Fox (through Star and Sky) have interests in cable and DTH companies. While Sky owns 20 per cent stake in Tata Sky, Star has a joint venture cable distribution company with Sameer Manchanda's Den Networks called Star Den.

"The crux of these reforms is to further ease, rationalise and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of the government route where time and energy of the investors is wasted," said the ministry advisory.

Resource :-http://www.business-standard.com/article/economy-policy/fdi-in-cable-dth-raised-to-100-115111100037_1.html