As many as 13 proposals involving foreign equity in software ventures are pending with the Foreign Investment Promotion Board, which were put on hold in anticipation of a comprehensive broadcasting policy.

Government sources told The Financial Express that the foreign investment policy in this regard has already been formulated by the concerned ministries and is awaiting final approval.

They further said the relevant ministries, including the Union information and broadcasting ministry, have communicated that they have no objection to the setting up of 100 per cent foreign-owned software companies.

The proposals pending with the board include that of Srishti Videocorp, TV18, Music Asia and Newscorp.

The information and broadcasting ministry has already de-linked the subject of uplinking from the BroadcastingBill. The ministry felt that foreign direct investment in software firms could be permitted as TV software companies are not directly related to broadcasting.

The union information and broadcasting minister Sushma Swaraj has also recently said that the government will work towards making it mandatory for the foreign channels to uplink from the country. Currently, only 80-per cent Indian-owned companies can uplink from the country through Videsh Sanchar Nigam.

The much-awaited Broadcasting Bill is, however, expected to be tabled in the next session of Parliament.

The crucial subject of foreign equity in broadcasting companies will depend on the forthcoming legislation. The Bill also addresses important issues such as cross-media holdings.

It is interesting to note that while, broadcasting companies apart from Zee are struggling to get out of red, the software companies are faring well comparatively.

Analysts feel that the upswing in software business in the country's television industry is directlyproportional to enhanced reach of the channels as well as Indianisation of foreign channels. In both cases, the software companies are likely to have a field day.

Significantly, some of the foreign channels like Sony and Star have also come up a long way with the commissioning of Hindi programmes.

Though the government is taking its time to give the final nod to the new foreign direct investment policy, the broadcasting ministry is believed to be pre-occupied with the Prasar Bharati. The decks are, however, clear for appointing a new chairman to the Prasar Bharati board as well as a replacement for K Padmanabhaiah, who has recently resigned.

The selection committee, comprising the vice-president, Press Council chairman and a Presidential nominee, is expected to be formed soon for making fresh appointments and perhaps reconstituting the board.

INSIGHT
Need for a clear-cut policy

need for a clear-cut policy The liberalisation of foreign ownership makes sense, as this will enable theIndia-based TV software companies to make programmes consistent with the country's mores. In any case, software from foreign programmers is flowing into the country. Control over telecasting programmes is sought to be enforced by limiting foreign ownership to 20 per cent of the equity of companies owning broadcasting channels. The problem is that in the absence of a comprehensive new law on broadcasting, decisions are coming in bits and pieces. This tends to blur the policy objectives.