India’s media and telecoms regulator has proposed increasing the limit on foreign direct investment (FDI) in private radio companies to 49 percent.
The outline by the Telecom Regulatory Authority of India (TRAI) would also set a similar limit for television news channels.
According to Indian media, the proposals rhyme with earlier finance ministry recommendations which would see the limit rise from the current 26 percent.
TRAI recommends that FDI be routed through the Foreign Investment Promotion Board.
FM broadcasters have been lobbying the Indian government for several years to allow FDI to be raised in line with other parts of the media industry (direct-to-home DTH TV, cable TV and mobile TV) which are likely to be allowed 100 percent FDI.
But the Indian government maintains it needs to protect “sensitive content” like radio and TV news channels from too much foreign interference.
Officials still plan to raise the limit to encourage a better response to the auction of over 840 new FM frequencies in phase III of India’s radio development plan.
Phase III is already several years overdue.