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26% FDI in print may soon be a reality

In a move, which finally opens the door for the much-debated foreign direct investment in news and current affairs print media, the government on Thursday issued detailed guidelines specifying a cap of 26 per cent and making it clear that any foreign entity should have "sound credentials and international standing".

The guidelines come five months after the Union Cabinet cleared FDI in print media amid controversy with several Opposition parties and a section of the news organisations opposing any such move, while others favoured it.

The government okayed the FDI in print media a year after it declared that it was against any such move as opening up of print media to foreign investment was not desirable given its impact on the public mind.

As per the guidelines, FDI in print is subject to the condition that the largest Indian shareholder controls at least 51 per cent equity in any new entity.

This 51 per cent equity is exclusive of that held by public sector banks and financial institutions, and of the total FDI envisaged in any joint venture at least 50 per cent will have to be inducted by issue of fresh equity, an official statement said.

The permission of the ministry of information and broadcasting is subject to the condition that at least three-fourth of any new entity's board of directors, key executives as well as editorial staff are resident Indians.

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