The Hindu Business Line : Clear FDI norms sought for downlinking TV channels

Chennai, Oct. 16 The Foreign Investment Promotion Board (FIPB) has asked the Department of Industrial Policy and Promotion (DIPP) to come out with clear foreign direct investment (FDI) policy guidelines for downlinking television channels.

The move comes in the wake of two applications from Metro-Goldwyn-Mayer (MGM) and Bloomberg seeking FIPB nod for downlinking their respective channels and distributing them to Indian homes through local satellite and cable channels.

“This is for the first time that the FIPB is considering such proposals at the request of the I&B Ministry,” sources said.

As of now, the FDI policy on broadcasting does not contain any specific provision for down linking as an activity.

On the other hand, according to the downlinking policy guidelines notified by the Ministry of I&B, 100 per cent FDI is permitted for companies undertaking down linking activities.

However, the guidelines state that though 100 per cent FDI is allowed, the Reserve Bank of India’s automatic approval route is not available to companies seeking down linking approval and has to seek clearance from the FIPB.

The FIPB has also asked the DIPP to take early steps to notify the FDI policy in this regard in consultation with the I&B Ministry.

Till date, all the foreign channels that are down linked in India are by 100 per cent Indian companies.

During the process of examining these two proposals, the board observed that there is no policy guideline before it which is applicable to such proposals. “But since there were requests from the I&B Ministry for favourable consideration of the proposals, they have been approved subject to compliance with the existing downlinking policy guidelines while simultaneously asking the DIPP to formulate the policy at the earliest,” he said.

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