The Hindu : Comprehensive FDI policy for media sought

Online edition of India's National Newspaper
Saturday, Jul 26, 2003

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Comprehensive FDI policy for media sought

By Anita Joshua

NEW DELHI JULY 25. The effort by foreign broadcasters to `derail' the Conditional Access System (CAS) and the Star News application for uplinking have given momentum — both within and outside the Fourth Estate — to the demand for strict guidelines to govern foreign participation in the media.

A couple of days after 83 members of Parliament urged the Prime Minister, Atal Behari Vajpayee, to put in place a regulatory mechanism to rein in foreign broadcasters, prominent newspaper establishments of the country joined hands with Indian broadcasters today to press for a comprehensive policy on foreign investment — applicable uniformly to print, television and radio — wherein the quantum is capped at 26 per cent.

Calling themselves the Indian Media Group (IMG), heads of 18 media houses met in the Capital today and decided to approach the Government for stricter policy guidelines to avoid manipulation. While asserting that the Indian media was competent and confident enough to take on any foreign player, the media heads maintained that the major control of the media should remain in Indian hands in those establishments having foreign investment/participation.

Besides a comprehensive media policy, the IMG is of the view that the Government should institute a regulatory authority to administer the media policy and address all complaints. Also, to avoid de facto control by a foreign company, the Group is in favour of 51 per cent of the shares remaining in one Indian family or Indian group, and noted that all activities relating to broadcasting — be it content creation, distribution or overall management — should remain in one licenced company.

This apart, the Group was unanimous about the need for implementing CAS, and ensuring that foreign-held companies submit to Indian jurisdiction — both in terms of Income-Tax guidelines and other laws pertaining to libel. Also, it was observed that "since media is an activity governed by Article 19 (1) (a) of the Constitution, the Government ought to probe the source of funding in order to detect real control as opposed to proxy control by Indians acting as decoy shareholders for foreigners".

In a letter sent to Mr.Vajpayee, last Monday, the 83 MPs had urged the Government to set up a regulatory body to ensure strict compliance with Indian rules, regulations and guidelines by the foreign broadcasters. Making an oblique reference to the Star News application for uplinking — without actually naming the channel — -- the MPs noted that in the absence of a regulatory body, a number of channels were not adhering to Indian uplinking guidelines.

Advocating a level playing field for Indian and foreign broadcasters, the parliamentarians demanded that foreign channels be brought under Indian broadcasting and taxation laws.

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