100% FDI allowed for facsimile edition of foreign newspapers

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The Commerce and Industry Ministry has allowed up to 100 per cent foreign direct investment (FDI) in publication of facsimile editions of foreign newspapers, provided the investment is held directly by the owners of original publication.

"The policy of foreign direct investment in the publication of facsimile edition of foreign newspapers include permitting 100 per cent FDI with prior approval of the government, provided the FDI is by the owner of the foreign newspaper. ," an official release said.

Also, the policy specifies that such a publication can be undertaken only by an entity incorporated or registered in India under the provisions of the Companies Act, 1956.

Earlier, the print media policy allowed only up to 26 per cent foreign investment, including the FDI cap.

"The policy for foreign investment in publication of Indian editions of foreign magazines dealing with news and current affairs includes up to 26 per cent of foreign investment, inclusive of FDI and investment by NRIs/ PIOs/ FIIs; 'magazine', for these guidelines shall be defined as a periodical publication brought out on a non-daily basis, containing public news or comments on public news.", the statement says.

Meanwhile the FDI cap for publishing of India Editions of foreign magazines dealing with news and current affairs has been kept at 26% inclusive of foreign investment, FIIs and NRIs and person of Indian origin said a statement issued by the Commerce and Industry Ministry.

The move could help those newspapers that wish to publish their foreign editions in India and makes it possible for media firms like The Anand Bazaar Patrika Group had joined hands with Time Inc. for an Indian edition of Fortune magazine, while the TV18 Group has teamed up with Forbes Media, the publisher of Forbes magazine, to publish a business magazine in India.

Meanwhile, the Foreign Investment Promotion Board (FIPB) has cleared the proposal of US-based Dow Jones to start facsimile edition of its newspaper The Wall Street Journal (WSJ) in India. The proposal was turned down twice earlier pending the review, but the company had applied to FIPB under deferred proposal agenda in its meeting on January 9.