Government to raise FDI cap to 100 per cent in DTH and cable networks

The government is considering a proposal to raise the FDI limit to 100 per cent in broadcasting carriage and content services, including DTH and cable networks. An inter-ministerial committee is considering FDI proposals, including hiking foreign direct investment cap in cable networks, direct-to-home (DTH), Mobile TV, HITS (Headend-in-the Sky Broadcasting Service) and Teleports to 100 per cent, from 74 per cent now.

The proposal under discussion is to raise the limit to 49 per cent from the present 26 per cent in case of broadcasting content services such as uplinking of news and current affairs TV channels.

The government is considering to raise the FDI cap to attract overseas investments and improve infrastructure. The increment in FDI limit will help improve the pace of digitisation of broadcasting services across India.

In March, cable television services firm Den Networks had approved increasing the limit of foreign investment in the company from existing 49 per cent to 74 per cent. Similarly in August, Hathway Cable had received FIPB approval to increase foreign investment limit in the firm from the existing 49 per cent to 74 per cent.

Companies which are involved in the business of broadcasting carriage services came under focus on upcoming 100 per cent FDI limit. Today Dish TV, Den Networks and Hathway Cable and Datacom on BSE increased by 5.17 per cent, 4.68 per cent and 1.94 per cent on early trades respectively.

India received USD 30.93 billion FDI in FY15, with a growth of 27 per cent on yearly basis. During Q1FY16, foreign direct investment into the country rose by 31 per cent to USD 9.50 billion.

The government has already relaxed FDI norms in sectors such as defence, construction and railways. It is also considering relaxing norms for the rubber and coffee sector. The government is considering increasing the foreign direct investment (FDI) limit in private banks to 100 per cent, from the existing 74 per cent.