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FICCI suggests raising of FDI to 49%

FICCI suggests raising of FDI to 49%

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The Federation of Indian Chambers of Commerce and Industry (FICCI) has recommended for a raise in the Foreign Direct Investment (FDI) limit for News and Current Affairs television channels to at least 49 per cent in accordance with the recommendations of the Telecom Regulatory Authority of India (TRAI) in 2008.

In a memorandum to Finance Minister Pranab Mukherjee, FICCI said that FDI is a better method for funding compared to the other means of foreign investments as FAI ensured a long term commitment.

FICCI also suggested that service tax levied on the DTH industry be reduced by 4 per cent in order for the industry to sustain itself as similar entertainment taxes are being levied on their services by some states already.

FICCI added that the cable industry's unorganised growth for the last twenty years in an by deploying out dated analogue technology has resulted in considerable loss to the government as tax collections have suffered owing to large scale under declaration of subscriber base by the cable sector.

FICCI also recommended that granting of infrastructure status to the broadcast infrastructure providers namely teleport operators, multi system operators, local cable operators, DTH operators, et al, shall go a long way to ensure well rounded growth of the sector.

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