The much-awaited Parliamentary Committee Report on entry of foreign print media into the country has rejected any foreign equity in the print media.
The report said it would have the potential of "polluting" the cultural life and changing the "basic orientation" of the Indian mind in the long run.
The crucial Report of the Standing Committee on Information Technology, under the chairmanship of CPI-M leader Somnath Chatterjee, did not approve the contention by some witnesses that foreign investment should be allowed with a "reasonable cap" put on the foreign shareholder.
"The Committee does not agree with the proposition that it is safe upto 25 per cent foreign equity in the print media," the report tabled in Lok Sabha on Friday said.
It felt the foreign investor, even with a minority shareholding, can gain effective control of manangement and editorial board of the newspaper through shareholders agreement or loan agreement.
The Committee said the foreign investor who comes forward to invest in the Indian newspaper industry would do so not merely by the lure of returns but "because of the tempting prospect of gaining enormous clout in the socio-political life of this country".
On another contentious but related issue of allowing Indian editions of foreign magazines of scientific and technological character, it said such magazines could be allowed to be published provided they enter into collaboration with Indian publishing houses. Bureau Report