24th December, 2002
Ministry of Information & Broadcasting  


MAJOR INITIATIVES IN MEDIA SECTOR

PRINT MEDIA OPENED FOR FDI

COMMUNITY RADIO SERVICE APPROVED

FILM EXPORTS TOUCH RS. 1000 CRORES


YEAR END REVIEW - 2002

A number of major and far-reaching policy decisions, legislative measures and administrative initiatives were the highlights of the Ministry of Information and Broadcasting’s activities to meet the challenges of the fast developing media and entertainment sectors. These included opening up of the Print Media sector for the Foreign Direct Investment, passing of the Cable Televisions (Amendment) Bill by the Parliament to pave the way for introduction of the Conditional Access System for Cable TV network, introduction of the community Radio Scheme for educational institutions and the ‘rightsizing’ of the media units in the wake of the recommendations of the Geethakrishanan Committee.

FDI in Print Media

After opening the Direct to Home, the KU band and the uplinking areas for the FDI, the Government this year took a major decision to open the Print media sector also for foreign investment. In the Non-News/Non-Current Affairs category, scientific, technical and speciality publication entities, the foreign investment has been allowed upto 74 per cent. This would also allow publication of Indian editions of foreign scientific, technical and speciality magazines/periodicals/journals. This would help making available speciality magazines etc., in the areas like health, computers and other technical subjects at a much lesser cost and make India a publication hub in Asia. In the News and Current Affairs, FDI has been allowed upto 26 per cent and that too with certain conditions. These conditions include that the largest shareholder must hold at least 51 per cent equity, ¾ of Directors and all executive and editorial staff have to be resident Indians and any change in equity would have to be intimated within 15 days. This decision will not only help getting the much needed funds in the publication sector but also help its modernization by employing the latest technology through international tie-ups. The Ministry has already started receiving proposals for clearance after the notification of guidelines for both the categories early this month.

Conditional Access System

The Ministry pursued vigorously the amendments to the Cable TV Act and got the Bill passed in the Winter Session of the Parliament, paving the way for the introduction of Conditional Access System for the Cable TV network in the country. This would not only provide protection to the Cable viewers from the ever increasing and arbitrarily hike in cable charges but would aslo enable the consumer to choose the channels he wants to view and pay only for those. The Government would specify the basic bouquet of free channels and its genre and also the maximum fee for the free bouquet. The notification for CAS would be issued immediately after the President’s accent to the Bill. To begin with, CAS is proposed to be introduced in four metros and would be extended to other big cities and towns, depending on the availability of the Set Top Boxes required.

Community Radio Scheme

Another major Government decision which would completely revolutionize the Radio Broadcasting in the country, is the approval to Ministry of Information and Broadcasting’s scheme to allow setting up of small FM Radio Stations by educational institutions. To begin with, the well-established educated institutions having their own campus like the universities, IITs/IIMs and residential schools have been allowed. The service would provide a platform for student and teaching communities to give expression to their creative talents in the production of programmes and socio-cultural cohesion through interactive programmes. It would help bridge the information gap by broadcasting programmes suited for the needs of the local community. However, the licencees would not be allowed to broadcast news and current affairs or election and political broadcasts, advertisements or sponsored programmes and would have to conform to the Programme Code of All India Radio.

Rightsizing and Reorientation of Media Units

The Ministry took up a major exercise of rightsizing and reorientation of its Media Units after a thorough review of their functioning following recommendations of the Geetakrishnan Committee which had suggested the winding up of several Media Units like the Song and Drama Division, Publications Division, Films Division, Directorate of Field Publicity, Directorate of Film Festivals, FTII etc., and drastic cuts in personnel in others like DAVP. The Ministry succeeded in convincing the Ministry of Finance about the relevance and importance of retaining all its Media Units by little reorganizing and restructuring and agreed to abolish only 1334 posts against over 5000 suggested by the Geethakrishnan Committee. For making the Media Units more effective by rationalizing their structure, the Song and Drama Division and Exhibition Wing of DAVP are being merged with the DFP. Film Sansar Campus is contemplated at Peddar Road, Mumbai to pool the resources of the film related units for making their best use and creating common facilities.

Boost to the Film Sector

The Ministry made concerted efforts to boost marketing of Indian films abroad and also to woo foreign production on India locales. The Information and Broadcasting Minister led large film delegations to Japan and USA and to the Cannes Film Festival. The Indian Pavilion at Cannes was a big draw and the Indian Film Industry was accorded the pride of place with the holding of a perspective of Raj Kapoor films, hailing him as ‘Prince of Bollywood’. A premier of ‘Devdas’ at Cannes was the first ever for an Indian film at the most prestigious film festival in the world. All these efforts have resulted in boosting export of Indian films which has already crossed Rs. 900 crores this year as against a mere Rs. 250 crores three years ago. Three treaties for co-productions are ready to be signed with Canada, Britain and France.