Easing FDI norms will accelerate investor interest: Vats

The Government recently announced that FDI will be relaxed in 15 sectors including defence, retail, banking, construction, civil aviation and electronic media. For electronic media, 100% FDI has been allowed in DTH and Cable Networks, mobile TV and teleport with no Government permission required till the limit of 49%. With this 49% (as against 26% earlier) FDI with Foreign Investment Promotion Board (FIPB) has allowed for FM Radio and uplinking of news and current affairs TV channels. The government has also elevated the FIPB’s monetary limit to Rs.5000 crore from Rs.3000 crore for clearing of FDI proposals.  

Expressing his pleasure at this announcement, Sudhanshu Vats, Group CEO, Viacom18 and Chairman, CII National Committee, Media and Entertainment said, “This seems to be an excellent way to flag off Diwali celebrations in the country. My compliments to our Prime Minister Shri Narendra Modi Ji and our Finance Minister Shri Arun Jaitley Ji. Today’s announcement emphasizes the need to align more industries to the automatic route of FDI, over the government regulated route, to enhance ease of raising capital. The increase in the FIPB limit from INR 3000 crore to INR 5000 crore expands its financial ambit thereby allowing for an increase in the quantum of proposals of interest.  By opening up certain industries the focus will shift to exploring newer markets with growth potential. For the Media and Entertainment industry in particular, the news broadcasters, radio, mobile TV market, cable broadband networks and DTH will witness accelerated investor interest.”