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Regular-article-logo Tuesday, 07 May 2024

MEDIA PROPOSALS ON FOREIGN INVESTMENT BOARD AGENDA 

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FROM NANDITA ROY & NITHYA SUBRAMANIAN Published 04.03.99, 12:00 AM
New Delhi, March 4 :     Catching the information and broadcasting (I&B) ministry unawares, the industry ministry has listed several pending I&B proposals on the agenda for the Foreign Investment Promotion Board?s (FIPB) meeting on Saturday. Sources in the I&B ministry say they are puzzled by the move because it comes in spite of the decision to defer I&B proposals till the Broadcasting Bill is in place. Senior officials said they will soon ask the industry ministry to explain why these items have been put on the FIPB?s list of business. Board officials refused to divulge the reasons for including these proposals in the agenda, and said they would wait for the I&B ministry letter. The proposals which the Board plans to take up include Readers Digest Associates, Chafma BV, Netherlands, IF Productions France, Sony Pictures, Bloomberg Data Services, Group Carat, W. D. India Pvt. Ltd, Mudra Communications, New Age Productions, R.K. Swamy Associates, Chaitra Leo Burnett, Optima Communications, Zen Communications and Discovery Channel. Discovery Channel is seeking approval for distributing and marketing Animal Planet, its new channel. Meanwhile, industry sources say the I&B ministry has decided to allow up to 74 per cent foreign equity in all foreign direct investment proposals, except those in direct broadcasting. The clearance for foreign investment proposals other than those in direct broadcasting would mean software production houses like TV18, advertising agencies, marketing and distribution companies can increase foreign equity up to 74 per cent. Sources say the ministry has decided to take a more liberal approach towards proposals not linked to direct broadcasting. The move to allow more overseas equity in the information business is prompted by the realisation that the Broadcast Bill is unlikely to be passed in the near future. Sources say the move will help attract foreign investment in a sector which has remained out of bounds so far. Earlier, I&B minister Pramod Mahajan decided to review the decision by his predecessor, Sushma Swaraj, to allow 100 per cent FDI in advertising companies following pressure from the Swadeshi Jagran Manch. SJM had urged Mahajan to exercise caution in clearing proposals in this area as there was a ?close nexus between advertisers and broadcasters?.    
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