Sell Out Or Liberalisation?

Brushing aside opposition from political parties and some of the influential media groups, the Governmenttoday finally decided to allow 26 percent Foreign Direct Investment in news and current affairs print media and 74 per cent foreign investment intechnical and medical publications and said it has devised "safeguards" to ensure that editorial and managementcontrol remains in Indian hands.

The controversial decision, which reverses the 1955 Cabinet resolution against foreign participation innews media, was taken by the Union Cabinet presided over by Prime Minister Atal Bihari Vajpayee after years ofdebate and in the face of outright rejection of the proposal by a Parliamentary Standing Committee recently.

However, no changes have been made in regard to news agencies, Information and Broadcasting Minister SushmaSwaraj told reporters after the cabinet meeting.

She said the government has "attempted to address" the concerns expressed over FDI in news andcurrent affairs media:"We have taken some precautions," Swaraj said, adding the management controlwill not be allowed to be in foreign hands. As a safeguard, at least three fourths of Board of Directors mustbe Indians and all key posts in the editorial board, including the Chief Editor as well as Managing Directorin such ventures have to be resident Indians, she said no exhaustive list of designations which must lie withIndians has been made but all "key posts" must rest with Indians.

Sawarj said before allowing any FDI in the print media, credentials of the investor will be thoroughlyscrutinised. Besides, any one single shareholder in such a venture must be an Indian with significantly higherstakes than the 26 per cent foreign equity permitted. "If the share pattern is to be changed, priorpermission of the Information and Broadcasting Ministry has to be obtained. There would be no post-disclosureor post-permission," she added.

Swaraj saidthe government has allowed 74 per cent foreign investment in non-news and non-current affairs media includingmedical, technical and scientific publications, while business publications would fall in the news and currentaffairs sector.

Asked what pushed the government into taking this controversial step, Swaraj said it was a logical decisionin line with opening up of other sectors including broadcasting "India has taken this route very safely.It's a careful opening up".

To a question whether the decision to open up news and current affairs print media to foreign investmentwas coming at the right time in the wake of the recent l'affaire Alex Perry and Time, she said"how can his article influence government's policy decisions?"

She evaded as "hypothetical" a query on whether the 26 per cent limit could be raised to 51 percent in due course.

To a question on how the decision to open up the news and current affairs print media was taken amidreported opposition from the Sangh Parivar, Swaraj said "I don't agree that the Parivar is opposed to it.People of the Parivar are also members of the Cabinet,  they were present today and the decision takenwas unanimous".