Foreign Investment rules relaxed: Print Media

New Delhi, Jul. 2 2002 (INS News) -- The Union Government of India decided foreign participation in print media by allowing 26% foreign direct investment in news and current affairs publication and 74% foreign investment in non news and non current affairs publication.

Forty seven years after Pandit Jawarlal Nehru's, the modern architect of India, cabinet banned foreign direct investment in Print media, Atal Behari Vajpayee reversed it with safeguard of control of management in Indian hands.

The foreign Investment in non current affairs publication, technically and medical journals would open its gate for local editions of foreign scientific journals making them available to the academic society.

Information & Broadcasting Minister Sushama Swaraj said the move to open up the print sector was a logical step forward after the opening of manufacturing and service sector to Foreign Direct Investment. Various concerns voiced within the political and media circles about the opening of the print media to foreign participation.

Although the guidelines would be finalised shortly,safeguards have been put up in the place to ensure that the editorial and management control remains in Indian hands. To ensure and a measure to prevent the control does not pass on to the foreign hands, it would be mandatory that three fourth of the Board of directors are resident Indians with key edition post held by Indians.

The new regime proposes the single largest Indian shareholder must hold equity share of over 26% in the mangement and the pattern cannot be changed without the permission of Information and Broadcasting Ministry and three fourth of Board of Directors should be Indians.

Information Minister Sushamam Swaraj continued that the Foreign Direct investment would be allowed on individual basis after the credentials of the investor has cleared by her ministry with consultation of Ministry of Home Affairs.The decision has come in the wake of stiff opposition from the left parties, and main oppositon party IndianNational congress.

Congress spokesman Anand Sharma told media that the party should committed for the 1955 cabinet resolution barring foreign investment in the print media.There was no consensus on the issue and the government had no mandate to make such a major policy shift.

Ramachandran Pillai of Communist Party of India (Marxist)said the move would allow multinationals to stifle public opinion and therby weaken the the democratic polity of the country It can also swallow large section of the print media

-- Sam Asharaf - South Asia Correspondent in Trivandrum, India
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