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Wednesday, November 18, 1998

I&B Ministry to lower foreign equity cap

Kaveree Bamzai  
NEW DELHI, Nov 17: The Ministry of Information and Broadcasting proposes to scale down the foreign equity cap of 49 per cent in the existing Broadcasting Bill to 20 per cent in the forthcoming winter session of Parliament. A Cabinet note on the amended Broadcasting Bill will be prepared by Ministry officials, it was decided at a meeting of officials today.

This cap will be in accordance with the BJP's National Agenda for Governance but it will be at variance with the Government's own recently-declared policy on Internet investment.

If the proposal comes through, both Star TV and Sony TV will have to give up part of their foreign holdings. While Star TV will have to divest at least 80 per cent, Sony TV -- which is 70 per cent foreign owned -- will have to divest to the extent of 50 per cent.

Also, if the Government has its way, the cross-media restriction will be looked at again keeping the vertical integration of satellite and cable TV in mind. The Government's move also takes into consideration thecable operators demand of amending the Cable TV Act.

The Prasar Bharati Bill will also be tabled in the Rajya Sabha, ending the controversy that began when former minister Sushma Swaraj pleaded shortage of time and passed an ordinance which led to Prasar Bharati CEO Surrindar Singh Gill's removal. Efforts will now be made at the political level to convince the Rajya Sabha (in which the BJP does not have a majority) to give their assent to the Bill. The contentious ordinance will automatically lapse.

At a three-hour long meeting, the officials also took major decisions on the implementation of the film policy. The unwieldy Film Export Promotion Forum and the Film Development Council will be restructured so as to be made smaller and more functional. The two expert committees are yet to meet. The revamped panels are expected to be named by Minister of State Mukhtar Abbas Naqvi in a few days.

Naqvi will also be constituting the governing board of the National Film Development Council, which has been pendingfor over a year. The same will be done with the Film and Television Institute at Pune.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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