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Early this morning, the government machinery was set in motion
to convey that the information and broadcasting minister Ravi Shankar
Prasad would announce the guidelines under the new uplinking issue
later today. About an hour before the scheduled interaction, the
minister cried off with the Press Information Bureau , the public
relations arm of the government, saying the "briefing was cancelled
as the minister had to rush off to an urgent and emergency meeting
called by the Prime Minister and the deputy Prime Minister."
Though in the backdrop of the recent killings by terrorists in the
strife-torn Jammu and Kashmir region, the top level meeting at the
Prime Minister's residence was a logical cause, what is being questioned
in certain quarters is the fact that in such Cabinet meetings traditionally
the ministers of state or junior ministers don't go. That is why
Prasad, despite being the I&B minister, is not the official spokesperson
for the government, a responsibility that is still being handled
by his predecessor at the ministry, parliamentary affairs minister
Sushma Swaraj.
Though the next date for announcing the FDI guidelines for TV news
channels desirous of uplinking from India has not been fixed yet,
government sources indicate it is likely to be tomorrow as the I&B
ministry wants to complete the proceedings as soon as possible.
The government, which has twice postponed over the last three days
the idea to hold a briefing on foreign equity guidelines, is also
learnt to be seriously making the guidelines stringent and combining
various clauses for news channels that has been specified in the
news and non-news category for the print medium.
It is likely that permission for uplinking for news channels from
India would be granted if, among other conditions, at least 3/4th
of the broad of directors of the news company and all key execs
and editorial staff being resident Indians.
It is also likely that another condition may specify the applicant
TV news company is required to intimate the names and details of
all persons not being resident Indians and who all are proposed
to be inducted on the board of the company.
These conditions may make life for the likes of Zee News and Star
News difficult.
Last week, the Indian Cabinet took the bull by its horns and exercising
a country's sovereign power to have laws to suit local environs,
a la any other country, put a 26 per cent foreign direct investment
(FDI) cap on television news companies desirous of uplinking from
India. This is at par with the FDI cap prevalent in the print medium
relating to news and current affairs.
In a smart move, the Indian government has also sought to stop backdoor
uplinking or by-passing of the new uplinking policy by saying that
that any channel or company that uses very small aperture terminals
(V-SATs)to uplink from India through Videsh Sanchar Nigam Ltd. would
also have to adhere to the FDI cap. Companies like Television Eighteen
Ltd. (for CNBC India business news channel with 51 per cent foreign
shareholding) fall within this category.
Meanwhile, government sources today indicated that the new uplinking
policy guidelines would be, "more or less", in line with norms for
FDI in the news category in the print medium.
It is also expected that as part of the guidelines for TV news channels,
the government may insist that the company desiring to uplink from
India should also have an Indian individual holding 51 per cent
equity stake, as it has been done for the print medium.
This step was taken to ensure that the control of the company did
not slip into foreign hands in a scenario where the foreign shareholding
was 26 per cent and the remaining 74 per cent was scattered amongst,
for example, 10 Indians whose shareholding individually would have
been less than the foreign shareholding.
It is also expected that as in the print medium, the government
may insist that the full editorial control of a news channel, beaming
into India primarily targeting Indian audience, should lie with
Indians to ensure editorial integrity.
If the government wants the guidelines to be more stringent, then
it can also insist that those small companies, which have uplink
permission or have teleport licence would have to ensure that they
do not indirectly rent their facilities to any company that has
dominant foreign shareholding.
Companies like TV Today Network (English news channel), NDTV World,
Star News and BBC are awaiting a green signal from the I&B ministry
to uplink channels from India.
However, doubts persist about the case of the British Broadcasting
Corporation News that has admitted to indiantelevision.com that
it is seeking an uplink licence from Indian authorities to augment
its global news gathering process.
An official statement from BBC News had sated sometime back that
its application for uplink was technical in nature and should not
be categorised with those of Star and others.
Still, quizzed on the issue, government officials are not clear
whether the 26 per cent FDI cap would be applicable on BBC News
or not. At the end of the day, an uplinking is an uplinking whether
it is done for technical reasons (as BBC News is insisting) or to
uplink a news channel for Indians (as being said by the likes of
TV Today, Star and NDTV).
The 26 per cent FDI cap, unlike that in other sectors like DTH and
the print medium, is inclusive of investments in a television news
company by foreign financial institutions, overseas corporate bodies,
non-resident Indians and external commercial borrowings.
The government, however, has made some concessions for existing
news channels that have foreign shareholding over the now-prescribed
permissible limit and has given them a year's time to go in for
equity restructuring to continue availing the uplinking permission
given to them earlier.
The government has also made it clear that though 100 per cent
FDI is allowed in entertainment channels, any percentage --- small
or big --- of news and current affairs programming on such channels
would compel the government to treat them as news channels.
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