Telecom Regulatory Authority of India has made recommendations for the FDI cap in TV news channels and FM radio to be increased to 49% of the licensee company. The current FDI cap for TV news channels is 26% and for FM radio, 20%.
In February 2008, TRAI had recommended that FDI should be raised to 26% for the FM channels which are interested in broadcasting news. It had also recommended the FDI limit to be raised to 49% in the case of the FM radio stations not interested in broadcasting news. But in the new recommendations, TRAI has appealed for raising the FDI limit to 49% irrespective of whether or not the FM radio station broadcasts news.
Meanwhile, the government has asked TRAI to review the recommendations. It has expressed its preference for a status quo in FDI in TV news channels and FM radio sectors.
TRAI has also recommended raising the FDI cap in DTH and cable networks to 74% from the current 49%.
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