The Union Cabinet on Thursday opted against allowing the publication of Indian editions of foreign newspapers while clearing a proposal to permit the printing of facsimile editions of foreign newspapers and periodicals. The question of whether Indian editions of foreign newspapers should be allowed came up for discussion as part of the package of print media policy changes presented to the Cabinet by the Information and Broadcasting (I&B) Ministry.
Briefing mediapersons on the Cabinet's decisions, I&B Minister S. Jaipal Reddy said Indian editions of foreign newspapers were not being allowed because of "some apprehension that the Indian newspaper industry will not be able to face the competition." Indians have access to foreign news in "real time" through the Internet and foreign television channels, he explained.
Suitable safeguards
While permitting facsimile editions of foreign newspapers to be printed, the Cabinet has not allowed them access to Indian content and advertisements. However, this does not mean Indian content or advertisements present in the original facsimile edition will not be allowed. Facsimile editions can be brought out by an Indian entity with or without FDI, and also by foreign companies owning the original newspaper, provided they get incorporated and registered in India under the Companies Act, 1956, with suitable safeguards to ensure they comply with Indian laws.
Responding to questions, Mr. Reddy said there was no credence in the contention that facsimile editions were being allowed to be printed from India to "legitimise" the printing and publication of the International Herald Tribune (IHT) from Hyderabad. Maintaining that policy decisions are taken with broader perspectives and not defined by individual cases, he said IHT would have to conform to the new law. He also ruled out penal action against the newspaper.
For a year now, a facsimile edition of IHT was being published "in violation of existing guidelines" to deal with which I&B Ministry had sought Cabinet clearance for amending certain sections of the Press and Registration of Books (PRB) Act, 1867, in September last. The Cabinet decided to set up a Group of Ministers (GoM) to take a comprehensive look at the print media policy. Thursday's decisions were taken as per the recommendations of the GoM headed by Union Home Minister Shivraj Patil.
Foreign investment
In the case of foreign investment, the Cabinet decided to usher in a more flexible regime. From the prevailing policy under which only FDI was allowed, now investments by Non-Resident Indians, Overseas Corporate Bodies, Persons of Indian Origin and portfolio investments by recognised Foreign Institutional Investors will be permitted within the existing ceiling of 26 per cent.
