The Telecom Regulatory Authority of India (TRAI) today released a consultation paper on foreign investment in broadcasting sector. her ministry said in a statement that foreign investment has an important role in the economic development as an important source of funding.
Foreign investment has other benefits also such as bringing in new technology, international best practices, and access to export markets, it added.
TRAI had submitted its recommendations on foreign ivestment limit for the broadcasting sector on 26th April, 2008. The calculation of indirect foreign equity is based on the "proportionate" method in the broadcasting sector.
The department of industrial policy and promotion, under the commerce ministry had issued Press Note No 2 (2009 Series) regarding the methodology to be used for calculating foreign investment including foreign direct and indirect investment.
Recognizing the need to bring in clarity, uniformity, consistency and homogeneity into the exact methodology of calculation across sectors / activities for direct and indirect foreign investment in Indian companies, the centre had proposed the guidelines for calculating direct and indirect foreign investment.
The information and broadcasting ministry, vide its letter dated 30 September 2009, asked TRAI to revisit its recommendations dated 26 April, 2008 in view of recently issued Press Note (press Note 2 and 4 of 2009 series) by the department of industrial policy and promotion about the method of calculation of total foreign investment ie direct and indirect foreign investment in Indian companies.
Taking into account the preliminary views of the stakeholders, TRAI has issued a consultation paper on the subject,, asking them to respond to the issues raised in this consultation paper by 30th January 2010.
The comments will be posted on TRAI's website and counter comments are to be sent to TRAI by 8 February 2010. The full text of the consultation paper is available on TRAI's website: www.trai.gov.in