Lok Sabha Question No. 183 (STARRED), answered on 2015-12-11
Subject: FDI in Media
Ministry: INFORMATION AND BROADCASTING
Asked by: BHARAT SINGH, ASHOK SHANKARRAO CHAVAN

## FDI IN MEDIA

## 183. SHRI BHARAT SINGH & SHRI ASHOK SHANKARRAO CHAVAN

Will the Minister of INFORMATION AND BROADCASTING be pleased to state:

- (a) The Foreign Direct Investment (FDI) limit permitted and also inflow reported for electronic and print media industry, segment-wise
- (b) Whether the Government has raised/proposes  to raise FDI ceiling in the Direct to Home (DTH) and cable networks, if so, the details thereof;
- (c) Whether  discussions  were  held  with  various  stakeholders  including  trade, industry and viewers before finalizing the said policy, if so, the details thereof and the response of various stakeholders thereon;
- (d) whether the Government has stipulated different norms and FDI limit for different segments like news,FM services, entertainment, broadcast carriage services etc; and
- e) If so, the details thereof along with the reasons therefor?

## ANSWER

THE MINISTER OF FINANCE; THE MINISTER OF CORPORATE AFFAIRS AND THE MINISTER OF INFORMATION AND BROADCASTING (SHRI ARUN JAITLEY)

- (a) to (e) A statement is laid on the table of the House.

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## GOVERNMENT OF INDIA MINISTRY OF INFORMATION & BROADCASTING LOK SABHA

## STARRED QUESTION NO. 183 (TO BE ANSWERED ON 11-12-2015)

## STATEMENT AS REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION No.183 FOR ANSWER ON 11.12.2015.

(a)       As per Press Note No. 12 (2015 series) dated 24.11.2015 issued by Department of Industrial Policy and Promotion (DIPP), permitted limit of FDI in electronic and print media is as  below:

| Sector/Activity                                                                                                                                                                                                                                                                                                                              | Foreign Investment Limit   | Entry route                                     |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------|-------------------------------------------------|
| 6.2.7.1.1 1) Teleports(setting up of up-linking HUBs/Teleports); 2) Direct to Home(DTH); 3) Cable Networks(Multi System Operators (MSOs) operating at National or State or District level and undertaking up gradation of networks towards digitalization and addressability); 4) Mobile TV; 5)Headend-in-the Sky Broadcasting Service(HITS) | 100%                       | Automatic up to 49% Government route beyond 49% |
| 6.2.7.1.2 Cable Networks (Other MSOs not undertaking up gradation of networks towards digitalization and addressability and Local Cable Operators (LCOs))                                                                                                                                                                                    | 100%                       | Automatic up to 49% Government route beyond 49% |
| 6.2.7.2.1 Terrestrial Broadcasting FM(FM Radio), subject to such terms and conditions as specified from time to time, by                                                                                                                                                                                                                     | 49%                        | Government                                      |

| Ministry of Information & Broadcasting, for grant of permission for setting up of FM Radio stations                                                                                                                                                                 |                                                |            |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|------------|
| 6.2.7.2.2 Up-linking of 'News & Current Affairs' TV Channels                                                                                                                                                                                                        | 49%                                            | Government |
| 6.2.7.2.3 Up-linking of 'Non-News & Current Affairs' TV Channels, Down-linking of TV Channels                                                                                                                                                                       | 100%                                           | Automatic  |
| 6.2.8.1 Publishing of newspaper and periodicals dealing with news and current affairs                                                                                                                                                                               | 26% (FDI and investment by NRIs/PIOs/F II/FPI) | Government |
| 6.2.8.2 Publication of Indian editions of foreign magazines dealing with news and current affairs                                                                                                                                                                   | 26% (FDI and investment by NRIs/PIOs/F II/FPI) | Government |
| 6.2.8.3 Publishing/printing of scientific and technical magazines/specialty journals/ periodicals, subject to compliance with the legal framework as applicable and guidelines issued in this regard from time to time by Ministry of Information and Broadcasting. | 100%                                           | Government |

| 6.2.8.4 Publication of facsimile edition of foreign newspapers   | 100%   | Government   |
|------------------------------------------------------------------|--------|--------------|

Inflow reported for electronic and print media industry segment-wise is at Annexure .

- b) As  per  DIPP's  Press  Note,  FDI  ceiling  in  DTH  and  cable  networks  has  been raised  from  74%  to  100%  of  which  49%  is  through  automatic  route  and  beyond  that through Government route.
- c) DIPP has informed that Telecom Regulatory Authority of India (TRAI) has held extensive consultations with stakeholders on the matters as per its mandate/ practice. As per recommendations of TRAI on Foreign Direct Investment (FDI) in Broadcasting sector in India dated 22.8.2013, TRAI had prepared and uploaded consultation papers on 'FDI Limits in Broadcasting Sector in India'. TRAI received responses from various stakeholders  including  the  industry  associations,  DTH  operators,  FM  radio  operators, Teleport operators,  Broadcasters  etc. The  same  are  available  on  their  website www.trai.gov.in.
3. (d) &  (e): Details of norms and FDI limit for different segments are at (a) above. As regards reasons, DIPP has informed that the caps in different activities of this Sector are raised broadly in the light of the recommendations of TRAI on FDI in Broadcasting Sector in India dated 22.8.2013, with a view to liberalise and simplify the FDI policy, so as  to  provide  ease  of  doing  business  in  the  country  leading  to  larger  FDI  inflows. Further, looking into the nature of activities of Up-linking of 'Non-News & Current Affairs' TV  Channels,  Down-linking  of  TV  Channels,  these  have  been  placed  under  the automatic route.

## ANNEXURE

## ANNEXURE REFERRED TO IN PART (a) OF THE REPLY TO LOK SABHA STARRED QUESTION NO.183 TO BE ANSWERED ON 11.12.2015

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM APRIL 2000 TO SEPTEMBER 2015 Sector ELECTRONIC MEDIA

| Sl No   | Year            | FDI in US$ million   |        |
|---------|-----------------|----------------------|--------|
| 1       | 2000-01 Apr-Mar |                      |   0    |
| 2       | 2001-02         |                      |   0    |
| 3       | 2002-03         |                      |   0    |
| 4       | 2003-04         |                      |   0    |
| 5       | 2004-05         |                      |   0    |
| 6       | 2005-06         |                      |   0    |
| 7       | 2006-07         |                      |   0    |
| 8       | 2007-08         |                      |   1.62 |
| 9       | 2008-09         |                      | 201.66 |
| 10      | 2009-10         |                      |   0.16 |
| 11      | 2010-11         |                      |   1.84 |
| 12      | 2011-12         |                      |   0    |
| 13      | 2012-13         |                      |   0.56 |
| 14      | 2013-14         |                      |   9.5  |
| 15      | 2014-15         |                      |   1.23 |
| 16      | 2015-16 Apr-Sep |                      |   0    |
|         | Grand Total     |                      | 216.57 |

## STATEMENT ON FINANCIAL YEAR WISE FDI EQUITY INFLOWS FROM APRIL 2000 TO SEPTEMBER 2015 Sector PRINT MEDIA

| Sl No   | Year            | FDI in US$ million   |       |
|---------|-----------------|----------------------|-------|
| 1       | 2000-01 Apr-Mar |                      |  0    |
| 2       | 2001-02         |                      |  0    |
| 3       | 2002-03         |                      |  0    |
| 4       | 2003-04         |                      |  0    |
| 5       | 2004-05         |                      |  0.39 |
| 6       | 2005-06         |                      |  0    |
| 7       | 2006-07         |                      | 32.75 |
| 8       | 2007-08         |                      |  2.3  |
| 9       | 2008-09         |                      | 20.34 |
| 10      | 2009-10         |                      |  0    |
| 11      | 2010-11         |                      |  0    |
| 12      | 2011-12         |                      |  6.98 |
| 13      | 2012-13         |                      |  1.16 |
| 14      | 2013-14         |                      |  0    |
| 15      | 2014-15         |                      |  0.59 |
| 16      | 2015-16 Apr-Sep |                      |  0.04 |
|         | Grand Total     |                      | 64.55 |

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