Monday, June 28, 2010
Industry body Assocham said on Sunday, the government should do away with time-consuming and cumbersome procedures for granting approval to FDI (Foreign Direct Investment) proposal for the media and entertainment sector.
It has recommended creation of a single-window system for the foreign investors, in a representation to the ministries of Finance and I&B (information and Broadcasting).
It said, “The single authority should have an efficient process in place for liaising and consulting with other authorities.” The chamber asserted the present processes for in quest of government approval for FDI in entertainment and media industries are time consuming, cumbersome and involve multiple inter-ministerial consultations, which is foremost to delays. Assocham asserted, “Such a transformation will help create a one-stop reference guide for foreign players who are looking to invest in India.”
Further, it added, to permit smooth transitions for mergers and acquisitions or corporate restructuring the ministry should consider permitting the transfer of pending applications and licenses to eligible entities. Besides, for certain segments investors have to obtain approvals from the I&B Ministry and FIPB (Foreign Investment Promotion Board).
The chamber said, “The Foreign Investment Promotion Board has its own consultation processes to follow before it grants the approvals.” According to the present guidelines which are implemented in various sections, are as follows.
The foreign direct investments which is allowed in cable network it is up to forty-nine per cent, in print media up to twenty six percent and in Direct-to Home up to forty nine percent, which is followed by the government route.
