he Ministry of Information and Broadcasting has decided to allow foreign direct investment (FDI) in private FM radio companies, but has limited the FDI level at the existing cap for foreign institutional investments, that is at 20 per cent. However, the ban on airing news and current affairs programmes on private channels will continue. The information and broadcasting ministry has forwarded its proposals to other ministries for their approval before it is placed before the Union Cabinet.

Not only will FDI bring in a stable and steady flow of equity to private FM radio companies, foreign partners can bring in better technology, says a media observer. It will help in funding long-term investments and in consolidating infrastructure, he adds. As far as content goes, there might be no major changes. Players in the field have realised that it�s best to localise content, says an executive in a Mumbai-based FM station.... more