The Indian government has raised the bar for foreign direct investment (FDI) in direct-to-home (DTH) broadcasting and cable service infrastructure to 74 per cent, according to Firstpost.
Cabinet raises the FDI cap on various streams of broadcast services by up to 74 per cent.
— Firstpost (@firstpostin) September 14, 2012
Previously, the government allowed 49% FDI in cable TV and DTH business, while the FDI limit for the Head end in the Sky (HITS) is 74%. HITS allows broadcast companies to provide TV channels in a bouquet form for cable operators and MSOs via satellite.
The department of industrial policy and promotion (DIPP) has proposed that the FDI limit in the broadcast carriage service should be uniform. Apart from that, 74% foreign direct investment (FDI) would be also considered in mobile TV, as the government considers it an area of future growth, according to a report by NDTV
It should be noted that this decision does not apply for TV channels, FM radio and content providers. The FDI limit on these mediums will stay at 26%, as per the DIPP proposal.