Revised DTH guidelines: Cabinet allows license for 20 years, 100 per cent FDI

NEW DELHI:  The Union Cabinet on Wednesday cleared the Information and Broadcasting Ministry’s revised guidelines allowing 100% FDI in direct-to-home (DTH) sector and  doubling licence validity to 20 years. Earlier, I&B ministry allowed only  49% foreign direct investment in the sector. 

Among the other changes is licence fee will be collected on a quarterly basis instead of annually, to make it in tune with the licence fee regime of the telecom sector. Also, DTH operators will be permitted to operate a maximum of 5% of their total channel carrying capacity as platform channels. 

“In India, more than six crore houses get DTH services. The commerce ministry had earlier decided 100% FDI in DTH services but DTH services could not get that benefit as the Information and Broadcasting Ministry’s guidelines allowed only 49% FDI.

The new guidelines will be in sync with the commerce ministry’s guidelines,” Union minister Prakash Javadekar said.  Welcoming the new guidelines, leading DTH player Tata Sky said the decision to grant licences to the operators for 20 years would provide certainty to the industry. 

Other cabinet decisions

• Films Division, Directorate of Film Festivals, National Film Archives of India and Children’s Film Society to merge with NFDC
• A total of Rs 59,000 crore for Post-Matric Scholarship Scheme to benefit 4 crore Scheduled Caste students in next 5 yrs