NEW DELHI, 17 June 2005 — Declaring that Indians have a right to information available anywhere in the world, the government yesterday permitted foreign newspapers to print facsimile editions in the country but stopped short of allowing them to bring out Indian editions.

It also allowed portfolio investment by non-resident Indians and overseas corporate bodies in electronic media within the 26 percent cap on foreign direct investment set earlier.

“The facsimile editions of foreign newspapers and periodicals will now be allowed to be brought out in India by either an Indian entity, with or without foreign direct investment, or by foreign companies owning the original newspapers provided they get registered in India,” Information and Broadcasting Minister S. Jaipal Reddy told reporters after a meeting of the Union Cabinet chaired by Prime Minister Manmohan Singh.

“Indian editions of foreign newspapers are not being permitted due to apprehensions of the Indian newspaper industry that they would not be able to withstand competition,” said Reddy.

To facilitate the decision, the government would enact necessary statutory changes, he stated.

In another decision related to the electronic media, the Cabinet has decided to allow flexibility in foreign investment.

“While retaining the 26 percent cap on foreign direct investment, we have decided to allow investments by non-resident Indians, overseas corporate bodies and people of Indian origin and portfolio investments by recognized foreign institutional investors for the news and current affairs segment in electronic media,” the minister said.

The Cabinet also approved raising the limit of 7.5 percent of syndicated columns from overseas to 20 percent of the total printed area. For cases above 20 percent, permission would be required from the Information and Broadcasting Ministry on a case-by-case basis, Reddy said.

The minister said these decisions have been taken in the interests of readers as “Indians have the right to information available anywhere in the world in real time”.

He said foreign newspapers seeking to bring out facsimile editions could either join hands with an Indian company or register in India with the permission of the ministry and hold 100 percent equity.

Declining to comment on the fact that the International Herald Tribune’s facsimile is already printed in India, the minister said: “We do not have to make laws keeping in mind a particular paper.”

The fact that the new regulation, which would come into effect immediately, would favor IHT is incidental, he said.

Foreign newspapers bringing out facsimile editions would be subjected to periodic monitoring to ensure that they abide by the guidelines and publish only the original version of the paper as brought out in the home country.

Reddy was of the view that facsimile editions would have limited Indian news content and, therefore, limited appeal.

While not permitted to seek advertisements directly from India, foreign newspapers would not be barred from carrying any Indian advertisements provided they were also published in the original edition, he clarified.

The decision was hailed by media pundits.

“I am delighted with the news. It is certainly good to hear that the government has allowed facsimile editions,” said The Asian Age Editor in Chief M.J. Akbar who took the lead in publishing IHT from Hyderabad long before there was any clarity on the issue.

“Vindicated is too strong a word, I was not at war with the government. I was merely making a point of principle that under Article 19 of the constitution one has the freedom to publish information,” said Akbar.

“A government cannot withhold this right without damaging the constitution. With this, 50 years of fiction has been exposed and I must congratulate Jaipal Reddy and Manmohan Singh who led this change,” he said.

“It had to happen one day. We are a free society. Why deprive readers here easy access to top foreign publications?” said S. Nihal Singh, columnist and former editor of The Statesman.

“Our coverage of foreign affairs is minimal. Affordable foreign publications are essential for encouraging global thinking among Indians at a time when India is pitching for a major global role,” Singh said.

Sevanti Ninan, columnist and media critic, hailed the decision. “Now, the Indian reader will have more to choose from. It’s in line with the liberalization that is happening in the rest of the country,” Ninan said.