Tag: finance ministry

  • Sports recognised as infrastructure sector, eligible for private investment

    Sports recognised as infrastructure sector, eligible for private investment

    NEW DELHI: Alarmed by India’s performance in the recent Rio Olympics, the Government appears to have pressed the panic button: which may help sports persons on the long run.

    After appointing two committees – one for pointing out why India failed, and the other to prepare for the next two Olympics, the Government included Sports in the harmonized master list of infrastructure sub-sectors.

    The proposal was mooted by the Sports Ministry so that the sports sector becomes eligible for obtaining long term financial support from banks and other financial institutions on the same principle as is available to other infrastructure projects.

    The Finance Ministry after a series of meetings and discussions with different agencies including Reserve Bank of India has decided that sports infrastructure will be included under the Harmonized Master List of Infrastructure Sub sectors and it “includes the provision of Sports Stadia and Infrastructure for Academies for Training / Research in Sports and Sports-related activities”

    In this connection Ministry of Finance, Department of Economic Affairs, had issued a Gazette Notification dated 9 September 2016.

    This inclusion would encourage private investment in a public good which has socio-economic externalities in a country with young population. It will also bolster investment in sports infrastructure sector which will contribute to the economy and help in promotion of health and fitness of the people of this country as also provide opportunities for employment in the new and exciting sectors. It goes without saying that investment of the private sector will widen the platform from where the country can become a sporting power in future.

  • Sports recognised as infrastructure sector, eligible for private investment

    Sports recognised as infrastructure sector, eligible for private investment

    NEW DELHI: Alarmed by India’s performance in the recent Rio Olympics, the Government appears to have pressed the panic button: which may help sports persons on the long run.

    After appointing two committees – one for pointing out why India failed, and the other to prepare for the next two Olympics, the Government included Sports in the harmonized master list of infrastructure sub-sectors.

    The proposal was mooted by the Sports Ministry so that the sports sector becomes eligible for obtaining long term financial support from banks and other financial institutions on the same principle as is available to other infrastructure projects.

    The Finance Ministry after a series of meetings and discussions with different agencies including Reserve Bank of India has decided that sports infrastructure will be included under the Harmonized Master List of Infrastructure Sub sectors and it “includes the provision of Sports Stadia and Infrastructure for Academies for Training / Research in Sports and Sports-related activities”

    In this connection Ministry of Finance, Department of Economic Affairs, had issued a Gazette Notification dated 9 September 2016.

    This inclusion would encourage private investment in a public good which has socio-economic externalities in a country with young population. It will also bolster investment in sports infrastructure sector which will contribute to the economy and help in promotion of health and fitness of the people of this country as also provide opportunities for employment in the new and exciting sectors. It goes without saying that investment of the private sector will widen the platform from where the country can become a sporting power in future.

  • Tikona Digital permitted to bring in over Rs 250 crore as foreign direct investment

    Tikona Digital permitted to bring in over Rs 250 crore as foreign direct investment

    NEW DELHI: The Finance Ministry has cleared a proposal of M/s Tikona Digital Networks Pvt Ltd for the issuance of CCDs thereby increasing foreign equity to 76.73%.

    This will involve Foreign Direct Investment of Rs 267 crore, according to the approval by the Foreign Investments Promotion Board in its 238th meeting.

    The Ministry approved the proposal by Haymarket SAC Publishing (India) Private Limited for the take over the publication of the specialty magazine “Print Week” from Haymarket Media (India) Private Limited, its sister concern as it does not involve any foreign direct investment.

    The Ministry deferred decision on a proposal by Quintillion Business Media Private Limited seeking approval for the issuance of equity shares to BLOOMBERG L.P. The investee company is proposed to be engaged inter alia in the uplinking and broadcasting of a business news television channel and operating related digital content platform in India.

    It also deferred a proposal by The Financial Times (India) Private Limited for transfer of 99.99% of The Financial Times (India) Private Limited to Falstaff Singapore Pte Ltd, currently held by Pearson, Singapore, for an aggregate consideration of SGD 1; transfer of one share of The Financial Times (India) Private Limited to Falstaff Singapore Pte Ltd, currently held by Pearson, Amsterdam; and transfer of entire shareholding of Falstaff Singapore Pte Ltd to Nikkei Inc, currently held by Pearson, Amsterdam.

    The Ministry deferred a proposal by M/s Idea Cellular Infrastructure Services Limited (ICISL) to take on record the increase of foreign investment in ICISL beyond 50% and allow foreign investment in ICISL up to 67.5%.

    The Ministry noted that ICISL is a wholly owned subsidiary of IDEA which has become a foreign owned company with more that 50% foreign investment. Accordingly, ICISL is also deemed to have foreign investment in excess of 50% as a mirror image of its parent company.

    A proposal by M/s BT Global Communications (Mauritius) Limited to acquire remaining 26% equity and preference share capital of M/s BT Telecom India Private Limited (Investee Company) from M/s Jubilant Stock Holding Private Limited, which will result in increasing its shareholding in the investee company from 74% to 100% was also deferred.

  • Tikona Digital permitted to bring in over Rs 250 crore as foreign direct investment

    Tikona Digital permitted to bring in over Rs 250 crore as foreign direct investment

    NEW DELHI: The Finance Ministry has cleared a proposal of M/s Tikona Digital Networks Pvt Ltd for the issuance of CCDs thereby increasing foreign equity to 76.73%.

    This will involve Foreign Direct Investment of Rs 267 crore, according to the approval by the Foreign Investments Promotion Board in its 238th meeting.

    The Ministry approved the proposal by Haymarket SAC Publishing (India) Private Limited for the take over the publication of the specialty magazine “Print Week” from Haymarket Media (India) Private Limited, its sister concern as it does not involve any foreign direct investment.

    The Ministry deferred decision on a proposal by Quintillion Business Media Private Limited seeking approval for the issuance of equity shares to BLOOMBERG L.P. The investee company is proposed to be engaged inter alia in the uplinking and broadcasting of a business news television channel and operating related digital content platform in India.

    It also deferred a proposal by The Financial Times (India) Private Limited for transfer of 99.99% of The Financial Times (India) Private Limited to Falstaff Singapore Pte Ltd, currently held by Pearson, Singapore, for an aggregate consideration of SGD 1; transfer of one share of The Financial Times (India) Private Limited to Falstaff Singapore Pte Ltd, currently held by Pearson, Amsterdam; and transfer of entire shareholding of Falstaff Singapore Pte Ltd to Nikkei Inc, currently held by Pearson, Amsterdam.

    The Ministry deferred a proposal by M/s Idea Cellular Infrastructure Services Limited (ICISL) to take on record the increase of foreign investment in ICISL beyond 50% and allow foreign investment in ICISL up to 67.5%.

    The Ministry noted that ICISL is a wholly owned subsidiary of IDEA which has become a foreign owned company with more that 50% foreign investment. Accordingly, ICISL is also deemed to have foreign investment in excess of 50% as a mirror image of its parent company.

    A proposal by M/s BT Global Communications (Mauritius) Limited to acquire remaining 26% equity and preference share capital of M/s BT Telecom India Private Limited (Investee Company) from M/s Jubilant Stock Holding Private Limited, which will result in increasing its shareholding in the investee company from 74% to 100% was also deferred.

  • 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.

  • Merger of schemes under MIB lead to reduction to one-third of 11th Plan

    Merger of schemes under MIB lead to reduction to one-third of 11th Plan

    NEW DELHI: The Information and Broadcasting Ministry has brought down the number of schemes under it from 65 in the Eleventh Plan to just 21 in the 12th Plan by the year 2016-17 by merely merging together under umbrella schemes the various schemes of its different media units with similar objectives and activities.

    The Parliamentary Standing Committee for Information Technology which goes into issues relating to I and B was informed that the ministry carried out a comprehensive rationalization and restructuring of the Plan schemes to achieve the thrust areas of the 12th Five Year Plan.

    The ministry said this is expected to result in optimum and effective utilization of outlay earmarked and better monitoring of Plan Schemes at implementing stages during the year 2016-17.

    Progress in the achievement of physical and financial targets in respect of schemes is now being reviewed by the secretary in the ministry to boost utilization in the current fiscal.

    In addition, the Financial Advisor of the ministry and the concerned joint secretaries also convene meetings at their level in order to review the performance of the plan schemes. In such meetings representatives from various media units under the ministry and implementing agencies are also called for discussion, whenever required.

    The allocation of funds to various sectors during 2015-16 and 2016-17 is:
    (Rs. in crore) Sector wise Budgetary Support
    BE 2015-16
    RE 2015-16
    Expenditure as on 31.03.2016
    BE 2016-17
     
    Information
     
    70.65
     
    193.42
     
    188.20
     
    183.02
    Film
    208.55
    77.31
    69.01
    141.48
    Broadcasting
    Main Sectt.
    30.30
    25.50
    23.41
    25.50
    Prasar Bharati
    605.03
    453.77
    453.77
    450.00
    Total Broadcasting
    635.33
    479.27
    477.18
    475.50
    Total
    914.53
    750.00
    734.39
    800.00

    Thus, allocation for Broadcasting and Film Sectors has been reduced compared to last fiscal, i.e. 2015-16 but the Information Sector has got an enhanced allocation in 2016-17.

    When questioned about the reduction in other sectors and increase in the Information sector, the ministry informed the committee that the sector-wise fund allocation are based on the following rationale:

    1.    The scheme-wise expenditure trend during last four years of the 12th Five Year Plan;
    2.    Overall ceilings approved by Expenditure Finance Committee/Standing Finance Committee/Revised Cost             Estimates, for the 12th Plan (2012-17) with respect to each scheme;
    3.    Annual scheme-wise budget proposals from different wings based on their expenditure capacity;
    4.    Full provision for continuing schemes for completion of the schemes.
    5.    Overall ceiling fixed by the ministry of Finance.

    As the Revised Cost Estimates (RCE) of sub-scheme “People’s Empowerment through Development Communication (Conception and Dissemination) (Directorate of Advertising and Visual Publicity” was under consideration at the beginning of 2015-16, an amount of Rs 131 crore for this scheme was kept in the scheme “National Film Heritage Mission” of the film sector. After the RCE of this sub-scheme was approved by the Finance ministry, the allocation for this sub-scheme was enhanced to Rs 151 crore. Consequently, allocation with respect to information sector at revised estimate stage increased to Rs.193.42 crore and the allocation for the film sector decreased to Rs.77.31 crore.

    When questioned whether the present allocation of Rs.800 crore for the current fiscal is sufficient to carry out the planned activities, the ministry told the committee that given the availability of resources and the set priorities of the government, the financial allocations are made to the ministries/departments which are mostly less than what is proposed to the Finance ministry.

    The Budget Estimates allocation of Rs 800 crore for the year 2016-17 for the I and B Ministry is less than the proposed amount of Rs 1,240.69 crore.

    However subject to the resource constraint, the ministry has tried to optimize the reduced allocation of Rs 800 crore amongst the schemes of the ministry sector-wise, by allocating funds to the media units in a rational manner to overcome the difficulty of reduced allocation.

    Subject to the availability of the budget, the ministry will make all out efforts to reach out to the people of the country and fulfill their mandate of the public broadcaster, Prasar Bharati.
     

  • Merger of schemes under MIB lead to reduction to one-third of 11th Plan

    Merger of schemes under MIB lead to reduction to one-third of 11th Plan

    NEW DELHI: The Information and Broadcasting Ministry has brought down the number of schemes under it from 65 in the Eleventh Plan to just 21 in the 12th Plan by the year 2016-17 by merely merging together under umbrella schemes the various schemes of its different media units with similar objectives and activities.

    The Parliamentary Standing Committee for Information Technology which goes into issues relating to I and B was informed that the ministry carried out a comprehensive rationalization and restructuring of the Plan schemes to achieve the thrust areas of the 12th Five Year Plan.

    The ministry said this is expected to result in optimum and effective utilization of outlay earmarked and better monitoring of Plan Schemes at implementing stages during the year 2016-17.

    Progress in the achievement of physical and financial targets in respect of schemes is now being reviewed by the secretary in the ministry to boost utilization in the current fiscal.

    In addition, the Financial Advisor of the ministry and the concerned joint secretaries also convene meetings at their level in order to review the performance of the plan schemes. In such meetings representatives from various media units under the ministry and implementing agencies are also called for discussion, whenever required.

    The allocation of funds to various sectors during 2015-16 and 2016-17 is:
    (Rs. in crore) Sector wise Budgetary Support
    BE 2015-16
    RE 2015-16
    Expenditure as on 31.03.2016
    BE 2016-17
     
    Information
     
    70.65
     
    193.42
     
    188.20
     
    183.02
    Film
    208.55
    77.31
    69.01
    141.48
    Broadcasting
    Main Sectt.
    30.30
    25.50
    23.41
    25.50
    Prasar Bharati
    605.03
    453.77
    453.77
    450.00
    Total Broadcasting
    635.33
    479.27
    477.18
    475.50
    Total
    914.53
    750.00
    734.39
    800.00

    Thus, allocation for Broadcasting and Film Sectors has been reduced compared to last fiscal, i.e. 2015-16 but the Information Sector has got an enhanced allocation in 2016-17.

    When questioned about the reduction in other sectors and increase in the Information sector, the ministry informed the committee that the sector-wise fund allocation are based on the following rationale:

    1.    The scheme-wise expenditure trend during last four years of the 12th Five Year Plan;
    2.    Overall ceilings approved by Expenditure Finance Committee/Standing Finance Committee/Revised Cost             Estimates, for the 12th Plan (2012-17) with respect to each scheme;
    3.    Annual scheme-wise budget proposals from different wings based on their expenditure capacity;
    4.    Full provision for continuing schemes for completion of the schemes.
    5.    Overall ceiling fixed by the ministry of Finance.

    As the Revised Cost Estimates (RCE) of sub-scheme “People’s Empowerment through Development Communication (Conception and Dissemination) (Directorate of Advertising and Visual Publicity” was under consideration at the beginning of 2015-16, an amount of Rs 131 crore for this scheme was kept in the scheme “National Film Heritage Mission” of the film sector. After the RCE of this sub-scheme was approved by the Finance ministry, the allocation for this sub-scheme was enhanced to Rs 151 crore. Consequently, allocation with respect to information sector at revised estimate stage increased to Rs.193.42 crore and the allocation for the film sector decreased to Rs.77.31 crore.

    When questioned whether the present allocation of Rs.800 crore for the current fiscal is sufficient to carry out the planned activities, the ministry told the committee that given the availability of resources and the set priorities of the government, the financial allocations are made to the ministries/departments which are mostly less than what is proposed to the Finance ministry.

    The Budget Estimates allocation of Rs 800 crore for the year 2016-17 for the I and B Ministry is less than the proposed amount of Rs 1,240.69 crore.

    However subject to the resource constraint, the ministry has tried to optimize the reduced allocation of Rs 800 crore amongst the schemes of the ministry sector-wise, by allocating funds to the media units in a rational manner to overcome the difficulty of reduced allocation.

    Subject to the availability of the budget, the ministry will make all out efforts to reach out to the people of the country and fulfill their mandate of the public broadcaster, Prasar Bharati.