NEW DELHI: Assocham has urged the government to streamline approval processes for Foreign Direct Investments (FDIs) in Media and Entertainment (M&E) sector.
"The current approval processes are cumbersome, time consuming, involving multiple inter-ministerial consultations and thus, delay FDI’s in M&E," the industry body said.
In a representation submitted to the Ministries of Information and Broadcasting and Finance, the chamber said it has suggested that a single window system should be implemented so that applicants approach only one authority for obtaining all required approvals and clearances.
The chamber also stressed upon expediting inter-ministerial approval processes, saying that such approval processes should be expedited by having more frequent meetings and better administrative systems.
The industry body was of the view that Ministry of Information and Broadcasting should also consider permitting the transfer of pending applications and licences to eligible entities so as to permit smooth transitions in events such as mergers and acquisitions or corporate re-structuring.
Assocham pointed out that the current approval processes suffer from multiple deficiencies which include over-lapse in various notifications, circulars, guidelines, codes and other regulations dealing with any one segment and a common feature and more often than not lead to confusion and inconsistencies while adhering to relevant laws.
It said both Foreign Investment Promotion Board (FIPB) and Ministry of Information and Broadcasting approval are required to be obtained for foreign investment in certain segments of M&E sector.
Further, the chamber pointed out that in most cases where Ministry of Information and Broadcasting approvals are required, the Ministry in turn is required to internally receive clearances from other relevant Ministries. Assocham said these issues are discussed in what is known as inter-ministerial meetings. Such inter-ministerial meetings are not set up frequently, which delays the entire approval process.
Citing an example, Assocham said, in applying for a DTH licence, the company is required to submit information to the Ministry of Information and Broadcasting (MIB) regarding its directors and key executives, which the MIB then sends to the Ministry of Home Affairs to receive security clearances for the concerned individuals.
Alongside this, an application must be made to the Department of Space under the Ministry of Science and Technology (SACFA) for satellite clearance. An application must also be made to the Wireless Planning and Coordination (WPC) for SACFA clearance.
