Govt allows 26% FDI in FM radio

The government on Friday raised the foreign direct investment (FDI) ceiling on FM radio to 26% from the current 20%, removed limitations of a compulsory lock-in-period and minimum build-up area for FDI in the construction industry when it builds old-age homes and educational institutions. HT reports.

The government on Friday raised the foreign direct investment (FDI) ceiling on FM radio to 26% from the current 20%, removed limitations of a compulsory lock-in-period and minimum build-up area for FDI in the construction industry when it builds old-age homes and educational institutions.

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The increase in FDI ceiling for FM radio will ensure conformity of foreign investment limit in this sector with other similar activities in the information and broadcasting sector, a statement released by the commerce and industry ministry said.

The government also allowed upto 100% FDI in apiculture or beekeeping, liberalised convertion of imported machinery and allowed "pledging of shares" by Indian companies that have raised external commercial borrowings (ECBs).

Besides, limitations of compulsory lock-in-period, minimum build-up area for FDI in the construction industry for old-age homes and educational institutions with immediate effect has been removed.

“These conditionalities perhaps posed a constraint to FDI coming into these areas since educational institutions such as schools, colleges, universities as well as old-age homes have their own special requirements which do not necessarily fit these conditionalities,” the statement said.