The foreign investment cap in FM radio has been fixed at 26 per cent. The Commerce Ministry formalised this ceiling by issuing a circular on Friday.
Earlier limit
The earlier limit on foreign investment in the sector was 20 per cent and the industry had been asking for a higher ceiling.
The notification of the revised limit in terrestrial broadcasting or FM radio said, “The foreign investment limit for FM radio has been enhanced to 26 per cent from the earlier 20 per cent. This change ensures conformity of the foreign investment limit in this sector with other similar activities in the information & broadcasting sector.”
Welcoming the decision, Mr Tarun Katial, Chief Operating Officer, BIG FM, said, “This would allow long-term strategic investors to invest in the sector.” He said, “For the radio industry in general and BIG FM in particular, this is good news. Over the years, due to the small cap of 20 per cent, no strategic investor ventured to invest in the sector. The long-term outlook was weak. This increase in the cap will allow the industry to make use of international capital as well as strategic know-how, improving the ability of the sector greatly.”
Mr Kanwar Sameer, National Programming Head of Radio Mantra 91.9 FM, said, “The implications of this are positive. More money coming in will change the dynamics and it means good for the industry.”