Bharti DTH gets FDI go ahead

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Bharti Telemedia, which operates Airtel Digital TV, has finally got clearance from the Foreign Investment Promotion Board (FIPB), which had become crucial because Bharti had already launched its DTH operations.

At the moment, Bharti Airtel holds 40 per cent in Bharti Telemedia. Since Bharti Airtel has foreign holdings in it, information and broadcasting ministry was worried that the foreign indirect investment in Bharti Telemedia may be exceeding the FDI limit of 20 per cent for the sector.

The ministry had asked Telemedia to get FIPB clearance. Bharti Telemedia's case was referred to the FIPB, which has finally cleared the case.

The case’s findings are with NDTV which says: "Foreign direct investment in Airtel is 48.12 per cent and with a 40 per cent stake in Bharti Telemedia the indirect FDI in Telemedia turns out to be 19.25 per cent, just below the mandated 20 per cent cap."

Sunil Mittal can now heave a sigh of relief because just months after a big bang launch, Bharti's DTH plans were on the verge of being scuttled. But with this clearance it can now hope to put its DTH plans in a fast gear.


Bharti's clearance for FDI in DTH has come at a time when government is looking to hike the FDI limit in the DTH sector to 49 per cent.

This means that not only Bharti but all the other DTH players may soon be in a position to bring in more foreign money and foreign partners into their DTH ventures

[Jayant]

So nice to read about there foreign money issue, thanks for posting!