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Tag: FDI

  • Radio FM Phase III applicants can get 49 per cent FDI after FIPB clearance

    Radio FM Phase III applicants can get 49 per cent FDI after FIPB clearance

    NEW DELHI: Applicants in Phase III of FM Radio will be able to attract foreign direct investment, but the total direct and indirect investment including portfolio and FDI into the company will not exceed 49 per cent at the time of application and currency of licence.

    In an announcement today, the Government said the company would be required the status of such foreign holding and it will have to certify that it is within 49 per cent on a yearly basis.

    It was also clarified that any investment will have to be with the approval of the Foreign Investments Promotion Board.

    The calculation of the direct or indirect foreign investments will be as per extant policy of the government.

    This has been done today by an amendent in the Policy Guidelines for Phase III announced on 24 November last year.

    While announcing a relaxation on FDI in the electronic media on 20 June 2016, the Government had not referred to radio.

    For more information click here:

  • Radio FM Phase III applicants can get 49 per cent FDI after FIPB clearance

    Radio FM Phase III applicants can get 49 per cent FDI after FIPB clearance

    NEW DELHI: Applicants in Phase III of FM Radio will be able to attract foreign direct investment, but the total direct and indirect investment including portfolio and FDI into the company will not exceed 49 per cent at the time of application and currency of licence.

    In an announcement today, the Government said the company would be required the status of such foreign holding and it will have to certify that it is within 49 per cent on a yearly basis.

    It was also clarified that any investment will have to be with the approval of the Foreign Investments Promotion Board.

    The calculation of the direct or indirect foreign investments will be as per extant policy of the government.

    This has been done today by an amendent in the Policy Guidelines for Phase III announced on 24 November last year.

    While announcing a relaxation on FDI in the electronic media on 20 June 2016, the Government had not referred to radio.

    For more information click here:

  • Govt examining proposal to relax FDI norms in Print Media

    Govt examining proposal to relax FDI norms in Print Media

    NEW DELHI: After a recent slew of relaxations relating to foreign investment norms, the PM Narendra Modi-led government is said to be considering a proposal to liberalise investment levels in print media.

    Quoting unnamed Finance Ministry officials, Bloomberg reported that the ministry is of the view that foreign investment norms in India’s print media could be raised from the present 26 per cent to 49 per cent, bringing it at par with norms for TV news segment.

    The Department of Industrial Policy and Promotion (DIPP) under the Commerce Ministry will take a final call on the matter, the Bloomberg report quoted the government officials as saying.

    Though, foreign investment in India’s print media sector is limited, but from time to time global giants like News Corp, having widespread interest in media, have evinced interest in investing here but stopped short because of restrictive policies and an inherent opposition from big Indian media groups.

    In June 2016, the government had liberalised foreign investment norms in many sectors including airlines, retail, defence and TV broadcast carriage services like DTH, HITS, teleports, etc.

    Recently, a delegation of  US-India Business Council (USIBC), which included some broadcast companies, had petitioned the Commerce Ministry to relax foreign investment levels in electronic news media that stands at 49 per cent at present, but just shy of giving majority controlling stake to any foreign entity.

    Interestingly, in January 2015, the then Minister of Information and Broadcasting (MIB) and present Finance Minister Arun Jaitley had opined that restrictions on foreign investment limit in print media need to be debated afresh.

    Delivering the inaugural JS Verma memorial lecture, organised by News Broadcasters’ Association (NBA), Jaitley had said the practicality of FDI norms in print media should be examined anew in a spreading digital age when such limits are becoming irrelevant as news products are increasingly being made available on the Internet.

    Finance Minister Jaitley’s forward-looking views on foreign investment norms in India’s print sector — and media in general — could be viewed at

    and 

    Are such proposals under study a precursor to relaxations for TV news channels too?

    ALSO READ
    Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster
     

  • Govt examining proposal to relax FDI norms in Print Media

    Govt examining proposal to relax FDI norms in Print Media

    NEW DELHI: After a recent slew of relaxations relating to foreign investment norms, the PM Narendra Modi-led government is said to be considering a proposal to liberalise investment levels in print media.

    Quoting unnamed Finance Ministry officials, Bloomberg reported that the ministry is of the view that foreign investment norms in India’s print media could be raised from the present 26 per cent to 49 per cent, bringing it at par with norms for TV news segment.

    The Department of Industrial Policy and Promotion (DIPP) under the Commerce Ministry will take a final call on the matter, the Bloomberg report quoted the government officials as saying.

    Though, foreign investment in India’s print media sector is limited, but from time to time global giants like News Corp, having widespread interest in media, have evinced interest in investing here but stopped short because of restrictive policies and an inherent opposition from big Indian media groups.

    In June 2016, the government had liberalised foreign investment norms in many sectors including airlines, retail, defence and TV broadcast carriage services like DTH, HITS, teleports, etc.

    Recently, a delegation of  US-India Business Council (USIBC), which included some broadcast companies, had petitioned the Commerce Ministry to relax foreign investment levels in electronic news media that stands at 49 per cent at present, but just shy of giving majority controlling stake to any foreign entity.

    Interestingly, in January 2015, the then Minister of Information and Broadcasting (MIB) and present Finance Minister Arun Jaitley had opined that restrictions on foreign investment limit in print media need to be debated afresh.

    Delivering the inaugural JS Verma memorial lecture, organised by News Broadcasters’ Association (NBA), Jaitley had said the practicality of FDI norms in print media should be examined anew in a spreading digital age when such limits are becoming irrelevant as news products are increasingly being made available on the Internet.

    Finance Minister Jaitley’s forward-looking views on foreign investment norms in India’s print sector — and media in general — could be viewed at

    and 

    Are such proposals under study a precursor to relaxations for TV news channels too?

    ALSO READ
    Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster
     

  • RCom proposal for setting up subsidiary telecom company rejected

    RCom proposal for setting up subsidiary telecom company rejected

    NEW DELHI: The Government has rejected the proposal by Flag Telecom Singapore Pte Limited, Singapore, an indirect wholly owned subsidiary of Reliance Communications (RCOM), for setting up a 100 percent subsidiary telecom company. The company was yet to be incorporated, an official Finance Ministry release said.

    Meanwhile following recommendations of the Foreign Investments Promotion Board, the Ministry deferred a decision relating to You Broadband India Limited post facto seeking approval for acquisition of 9,79,875 equity shares of its downstream company Digital Outsourcing Private Limited (DOPL) in lieu of issue of 20,58,759 equity shares to its resident shareholders by way of swap of shares.

    It also deferred approval to Tikona Digital Networks Pvt Ltd for the issuance of CCDs thereby increasing foreign equity to 76.73 percent.

    The Ministry approved a proposal by Macmillan Publishers International Ltd, UK for foreign investment of up to 100 percent in a new company (‘New Co.)’, proposed to be incorporated in India in the publishing sector. This involved FDI amounting to Rs 28.2 crore.

  • RCom proposal for setting up subsidiary telecom company rejected

    RCom proposal for setting up subsidiary telecom company rejected

    NEW DELHI: The Government has rejected the proposal by Flag Telecom Singapore Pte Limited, Singapore, an indirect wholly owned subsidiary of Reliance Communications (RCOM), for setting up a 100 percent subsidiary telecom company. The company was yet to be incorporated, an official Finance Ministry release said.

    Meanwhile following recommendations of the Foreign Investments Promotion Board, the Ministry deferred a decision relating to You Broadband India Limited post facto seeking approval for acquisition of 9,79,875 equity shares of its downstream company Digital Outsourcing Private Limited (DOPL) in lieu of issue of 20,58,759 equity shares to its resident shareholders by way of swap of shares.

    It also deferred approval to Tikona Digital Networks Pvt Ltd for the issuance of CCDs thereby increasing foreign equity to 76.73 percent.

    The Ministry approved a proposal by Macmillan Publishers International Ltd, UK for foreign investment of up to 100 percent in a new company (‘New Co.)’, proposed to be incorporated in India in the publishing sector. This involved FDI amounting to Rs 28.2 crore.

  • Wadhwa says Siti Cable is continually looking for acquisitions

    Wadhwa says Siti Cable is continually looking for acquisitions

    MUMBAI: Siti Cable, part of the Essel group is not going to immediately get the benefits of the 100 per cent FDI relaxation in the TV distribution sector. This was revealed by Siti Cable executive director & CEO VD Wadhwa to TV channel Bloomberg TV a couple of days ago.

    Wadhwa said that the promoters own 71 per cent of Siti Cable Networks; with the non-promoter holding standing at 29 per cent. “At least for the next two to four quarters I don’t see any major benefits coming out to the government in terms of foreign currency inflows into the business,” he told Bloomberg TV.

    He added that the company would continue to grow both organically and inorganically in FY 2017. “The industry is going through a tight cash situation. The industry has largely been fragmented,” he stated. “Now consolidation is happening at the cable operator level, it is happening at the regional level. It is only a matter of time before it starts happening at the national level as well.”

    He revealed that his company was participating in the consolidation as post digitization it was becoming difficult for the cable operator to survive alone. “We are keeping our eye open because we have identified some of the geographies wherever we would like to expand by acquisition and wherever we see a strategic fit,” he explained.

    He pointed out to the network’s acquisitions recently in Maharashtra and Gujarat where Siti Cable was relatively weak.

    “In both these places we have expanded through partnerships. In Mumbai, we acquired 600,000 subscribers by acquiring 76 per cent in a local network Scod18. In Gujarat, we have acquired 700,000-800,000 subscribers by doing a 51:49 per cent joint venture in Gujarat,” he revealed.

    He said Siti Cable had agreed to take a 50 per cent stake in Assam-based Axom Communications as the existing promoter was comfortable in partaking of only that much equity. “The new Companies Act allows us to control an organization either through an equity stake or through the composition of the board. We chose to get a majority on the board and will be consolidating the results with Siti Cable’s financials on account of that,” he disclosed.

    Wadhwa explained that Siti Cable would be more open to taking anywhere between 51 per cent and 76 per cent stakes in cable TV ventures as it makes sense to have a partner who knows the local territory well to still be involved in the business even after acquisition or a partnership.

  • Wadhwa says Siti Cable is continually looking for acquisitions

    Wadhwa says Siti Cable is continually looking for acquisitions

    MUMBAI: Siti Cable, part of the Essel group is not going to immediately get the benefits of the 100 per cent FDI relaxation in the TV distribution sector. This was revealed by Siti Cable executive director & CEO VD Wadhwa to TV channel Bloomberg TV a couple of days ago.

    Wadhwa said that the promoters own 71 per cent of Siti Cable Networks; with the non-promoter holding standing at 29 per cent. “At least for the next two to four quarters I don’t see any major benefits coming out to the government in terms of foreign currency inflows into the business,” he told Bloomberg TV.

    He added that the company would continue to grow both organically and inorganically in FY 2017. “The industry is going through a tight cash situation. The industry has largely been fragmented,” he stated. “Now consolidation is happening at the cable operator level, it is happening at the regional level. It is only a matter of time before it starts happening at the national level as well.”

    He revealed that his company was participating in the consolidation as post digitization it was becoming difficult for the cable operator to survive alone. “We are keeping our eye open because we have identified some of the geographies wherever we would like to expand by acquisition and wherever we see a strategic fit,” he explained.

    He pointed out to the network’s acquisitions recently in Maharashtra and Gujarat where Siti Cable was relatively weak.

    “In both these places we have expanded through partnerships. In Mumbai, we acquired 600,000 subscribers by acquiring 76 per cent in a local network Scod18. In Gujarat, we have acquired 700,000-800,000 subscribers by doing a 51:49 per cent joint venture in Gujarat,” he revealed.

    He said Siti Cable had agreed to take a 50 per cent stake in Assam-based Axom Communications as the existing promoter was comfortable in partaking of only that much equity. “The new Companies Act allows us to control an organization either through an equity stake or through the composition of the board. We chose to get a majority on the board and will be consolidating the results with Siti Cable’s financials on account of that,” he disclosed.

    Wadhwa explained that Siti Cable would be more open to taking anywhere between 51 per cent and 76 per cent stakes in cable TV ventures as it makes sense to have a partner who knows the local territory well to still be involved in the business even after acquisition or a partnership.

  • Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster

    Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster

    NEW DELHI: The broadcasting sector and particularly the cable sector welcomed the government’s announcement bringing almost the entire broadcasting sector under the automatic route for foreign direct investment.

    Stakeholders said the step was very timely as the country was on the verge of completing the transformation to digital addressable systems for cable television.

    The government had this morning announced opening up setting up of teleports, direct-to-home, cable networks, headend-in-the-sky and mobile television to 100 per cent foreign direct investment through the automatic route.

    The announcement from the Prime Minister’s office said this had been done with the objective of providing major impetus to employment and job creation in India.

    However with regard to the broadcasting sector, it was made clear that infusion of fresh foreign investment beyond 49 percent in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require approval of the Foreign Investments Promotion Board.

    However, Hinduja Ventures Ltd whole-time director and former president of the MSO Alliance Ashok Mansukhani told indiantelevision.com that these changes would have real meaning only if the government is able to bring back DAS ‘on the rails.’

    He said that just around six months were left for the final Phase of DAS and Phase III was already mired in several cases all over the country. Although the Supreme Court had directed that these be transferred to Delhi High Court, this process had not been completed with the result that the High Court could not proceed to hear the matter.

    Phase III was to cover 7,700 cities and Phase four is to cover 61 million (6.1 crore) television households, but all this will be derailed unless the government is able to implement the different phases.

    In a general reaction to the liberalization in FDI, FICCI Secretary-General Didar Singh said“There is no doubt that India today is the most preferred investment destination in the world. While the attraction of our market is known to all, there is now even more reason for global investors to commit themselves for making and doing business in India. Our government is translating words into action and after having made a strongest pitch ever to global investors, it if following up with a major overhaul of the FDI framework so that the interest generated is captured in the form of higher investment flows which are on a rise since the last two years”.

    National Cable and Telecommunication Association President Vikki Choudhuri, while welcoming the move, said the government should also immediately re-look at the regulations which are not favourable for BPOs and the last mile operator.

    Cable Operators Federation of India president Roop Sharma said that while the relaxation for cable and multi system sector going through automatic route was welcome, it would not serve any purpose unless the last mile operator is educated about this.

    As a result, she said it would only lead to creation of monopolies in the hands of a few large cable and MSO operators. This was because cable operators in smaller towns never even came to know about the changes since no effort was made by the government to educate them.

  • Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster

    Stakeholders welcome easing of FDI norms for broadcasting; want DAS to move faster

    NEW DELHI: The broadcasting sector and particularly the cable sector welcomed the government’s announcement bringing almost the entire broadcasting sector under the automatic route for foreign direct investment.

    Stakeholders said the step was very timely as the country was on the verge of completing the transformation to digital addressable systems for cable television.

    The government had this morning announced opening up setting up of teleports, direct-to-home, cable networks, headend-in-the-sky and mobile television to 100 per cent foreign direct investment through the automatic route.

    The announcement from the Prime Minister’s office said this had been done with the objective of providing major impetus to employment and job creation in India.

    However with regard to the broadcasting sector, it was made clear that infusion of fresh foreign investment beyond 49 percent in a company not seeking license/permission from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require approval of the Foreign Investments Promotion Board.

    However, Hinduja Ventures Ltd whole-time director and former president of the MSO Alliance Ashok Mansukhani told indiantelevision.com that these changes would have real meaning only if the government is able to bring back DAS ‘on the rails.’

    He said that just around six months were left for the final Phase of DAS and Phase III was already mired in several cases all over the country. Although the Supreme Court had directed that these be transferred to Delhi High Court, this process had not been completed with the result that the High Court could not proceed to hear the matter.

    Phase III was to cover 7,700 cities and Phase four is to cover 61 million (6.1 crore) television households, but all this will be derailed unless the government is able to implement the different phases.

    In a general reaction to the liberalization in FDI, FICCI Secretary-General Didar Singh said“There is no doubt that India today is the most preferred investment destination in the world. While the attraction of our market is known to all, there is now even more reason for global investors to commit themselves for making and doing business in India. Our government is translating words into action and after having made a strongest pitch ever to global investors, it if following up with a major overhaul of the FDI framework so that the interest generated is captured in the form of higher investment flows which are on a rise since the last two years”.

    National Cable and Telecommunication Association President Vikki Choudhuri, while welcoming the move, said the government should also immediately re-look at the regulations which are not favourable for BPOs and the last mile operator.

    Cable Operators Federation of India president Roop Sharma said that while the relaxation for cable and multi system sector going through automatic route was welcome, it would not serve any purpose unless the last mile operator is educated about this.

    As a result, she said it would only lead to creation of monopolies in the hands of a few large cable and MSO operators. This was because cable operators in smaller towns never even came to know about the changes since no effort was made by the government to educate them.