New Delhi, April 26: The television and radio regulator has opened the door for foreign investment wider, recommending that the government liberalise policy to allow the bar to be raised from 26 per cent to 49 per cent for news channels and for FM radio stations from 20 per cent to 49 per cent.

The recommendations come even as culture police in the country are worried over foreign influences — such as the idea of mini-skirted cheerleaders — that are allegedly corrupting the youth. But the Telecom Regulatory Authority of India (Trai) says its proposals were made after studying security and cultural considerations.

Trai released its study after the Union information and broadcasting ministry asked for its opinion in December 2007. It has been guided by the ministry as well as by the majority view of industry stakeholders in making its recommendations, the report released today shows.

Not only has Trai recommended further liberalisation, its report attempts to counter criticism of the new policy by linking it to development initiatives. The regulator noted that a few news broadcasters were against hiking foreign investment limits. The Centre will now have to take a call on Trai’s proposals.

“The lower limit of foreign investment is sometimes advocated on the ground that there is enough domestic funding available and, therefore, there is no need to take recourse to external sources of funding,” Trai notes.

It justifies its recommendation on the ground that “foreign investment is not only about opening the doors to foreign investors, it is also about bringing in world-class technology and international best practices. These are essential if we have to bridge the digital divide and reap the benefits not only in terms of improved entertainment, but in terms of successfully exploiting the whole range of communication and information technology offerings”.

Trai said it was making the recommendations after considering national security implications and the emphasis on “preserving the socio-cultural fabric of the country” and the protection of domestic industry.

The report nudges the government into framing policy for new technologies that are just coming into the country, such as mobile television. There is currently no policy on investment in this sector but Trai has recommended that the government allow up to 74 per cent foreign direct investment.

The broadcast regulator has suggested that status quo be maintained on investment in companies that uplink non-news TV channels and downlink channels. Foreign investment in such firms is allowed up to 100 per cent.