- Liberalisation of the Indian Press
- Government to allocate more funds for libraries
- Gulf Malayali wins Consumer Forum Case against Indian Airlines.
- Indo -UK Youth Exchange Programme 2002.
- Interesting Cartoon about the Middle East Politics
- Seventy kg of gold stolen from Makkah Jewlry Shop
- Anthrax infects 10 people in Oromiya region
Liberalisation of the Indian Press E.C. Thomas The Indian Press has entered the liberalisation phase with the government’s decision to open up the print media to foreign direct investment (FDI). This landmark decision, unshackling the Indian Press, is a measure of India’s growing self-confidence.
Foreign direct investment upto 26 per cent has been allowed in news and current affairs publications. In technical, medical and specialised science journals, foreign equity is to be allowed upto 74 per cent.
The new print media policy announced by the Information and Broadcasting Minister, Smt. Sushma Swaraj, on June 25, 2002 has come after a debate on the policy issue, stretching more than a decade. The government has been cautious in changing the 1955 Cabinet resolution against foreign participation in Indian print media. The country was skeptical about foreign investment in the early years after Independence, especially of its influence in the media, given the memory of colonial rule. However, changed circumstances and new developments in the media sector over the past decades and new challenges in the 21st century necessitated a comprehensive review of the whole matter.
Describing the move as "careful opening up" of the print media, Smt. Swaraj said it was a "logical decision in line with the opening up of other sectors including broadcasting". However, news agencies will continue to be governed by the 1955 Cabinet decision, prohibiting foreign participation.
The decision to restrict foreign equity to 26 per cent of total equity will mean that only joint ventures would be possible. This will automatically restrict the number of foreign players, since many foreign media groups would like to enter the Indian market with their respective brands.
Controversy
The desirability of allowing FDI in print media has been made by some media houses and journalists ever since foreign satellite channels were permitted to beam into the country a decade ago. However, the divergence of views and perspectives compelled the Government to defer the decision indefinetly.
The argument advanced by those who supported the entry of foreign investment in the print media is that since the foreign entry into electronic media has been permitted, there is little sense in insulating the print media against the foreign entry. According to them, the hold of electronic media on the public mind is far greater than that of the print media. TV has 75 per cent coverage of the population as opposed to the print media coverage of just 16 per cent.
The inconsistency had become even more glaring once foreign television channels and Internet were permitted access to the people. There are more than 40 million cable homes which have access to 100 per cent foreign- controlled media. There are more than a million Internet users who can access any site. Through these TV channels and Internet sites, millions of Indians are seeing and reading foreign material daily and this has not adversely affected the country in any way. Our main English newspapers- through news-sharing arrangements – carry articles from leading international newspapers, including tirades put out by the Pakistani media - for our consumption. So if the policy of banning foreign investment into print media was aimed at ensuring that our people are not influenced by foreign media, then it never served the purpose.
On the other hand, those who are opposed to the foreign investment argue that the influence of the print media on the public mind is greater than that of the electronic media. Their concern : foreign powers may take over the reigns in the newspaper business, thereby influencing the readers’ minds as per their needs.
The reasons for and against the entry of foreign investment have mostly to do with the business of news. Some media houses are struggling for lack of proper funds and cannot raise resources from the capital market. Those who are opposing are big profitable media houses which have a comfortable position and do no want to face competition.
Currently, the cost of printing newspapers containing 36 pages comes to about Rs. 8 and they are selling them at less than Rs.2 per copy. The subsidies are being managed because of enormous quantities of advertisement that some of the newspapers have been able to draw, by catering to tastes which have nothing to do with opinion making. Perhaps the opposition is understandable given the desire of every participant in any market to restrict competition. However, to portray a business concern as high principle of national interest by some media groups is somewhat amusing.
What the old policy did serve was creation of monopolies. In the past, we used to have many newspapers and periodicals which reflected many shades of opinion. But now that the field is left to a few newspapers without any powerful competition, they have practically eliminated all others. This has been done by predatory pricing – the pernicious practice of pricing a product way below its cost price so that it stifles competition and reduces the freedom of choice for the consumer.
At present, print media companies cannot get themselves listed in the Indian share market because their shares are not freely tradable. Moreover, restrictions in the trading of shares erode their value. Unless shares are freely tradable, the capital market never supports such companies. Even for getting the support of the Indian capital market, it is essential that the print media companies give at least their 26 per cent equity which is freely tradable.
The print media is now an industry. So all those facilities which are available to industry need to be given to the print media for its growth including opportunity to enter into the capital market of India without any restrictions. Any restriction on raising funds from the Indian capital market is very much counter-productive. Further, if the shares of Indian print media are not allowed to be purchased by foreign buyers the share value of such a company goes down considerably. Only those shares get their fair value where there is no restriction on their trading.
Reactions
Large sections of the media have welcomed the government’s decision to partially open up the print media to foreign direct investment as it will improve the condition of several small, medium and large newspapers.
In a joint statement, editors of leading national dailies welcomed FDI clearance, based on safeguards, hoping India’s economy would get a booster shot from foreign equity participation and better still, help the nation’s viewpoint find serious takers among international communities.
"The print media has been losing out in growth and reach, as well as in advertising, to the television industry, which has had no restrictions on foreign ownership. The government’s decision gives the print media a more level playing field than before", the statement said.
Safeguards
The fears regarding FDI in print are unfounded as the government has brought in adequate safeguards to ensure that the management and editorial control remain in Indian hands. For that the government has done a few things in the case of news and current affairs publications. The Indian shareholding cannot be dispersed and a single largest Indian shareholder must hold at least 26 per cent. Also, if the shareholding pattern is to be changed, prior permission of the I & B Ministry will have to be obtained.
To ensure that editorial control does no go to foreigners, at least three fourths of the board of directors must be resident Indians. All key editorial posts including the chief editor must be resident Indians.
All the applicants’ credentials would be verified by the Home Ministry. The Foreign Investment and Promotion Board (FIPB) route has been barred for investors entering the news and current affairs business. As FIPB is considered a fast-track clearance route, which may sometimes overlook things, only investors in non-news and non-current affairs publications can follow that route.
Advantages
Small and medium newspapers have been suffering from a capital constraint and the FDI option could offer them the required financial muscle. Media analysts also point out to a huge NRI investment community, keen on acquiring equity in Indian media.
Industry representatives say initially only the English language publications may tend to gain. But in the long run the policy benefits will percolate down to the regional Press as well. Overall, in the news and current affairs segment, the only possible advantage at the moment, till the time the FDI cap is pushed further up, would go to the reader. With foreign entry, the range and quality of information available to the reader will become expansive.
Among other things, foreign equity participation is expected to bring in a sound mechanism to evaluate readership, thereby having a major impact on advertising.
Besides, a focus on human resources, almost missing in the Indian print media, would come into play, once foreign players come on the Indian scene. HR practices would include appraisal system, training and development programmes.
The decision to permit 74 per cent equity in professional journals should go a long way in advancing the cause of professional education and research in medicine, engineering science and bio-technology. This decision will help India’s knowledge economy by providing it access to affordable literature from abroad.
FDI in print would mean that medium and small newspapers that were running on meagre funds now stand a chance to compete with bigger houses by striving to give the same or even better editorial quality. It also has the potential to reactivate the recession-hit media economy. It may even herald the arrival of "specialists" in Indian print on a wider scale that will go to underscore its difference from the electronic media. Newspapers may no longer have to emulate television for retaining readership, and that could well be the single biggest contribution of FDI.
Currently, media consolidation has turned news into a highly developed commodity. It is hoped that the entry of foreign capital does not transform the Indian print media into a commodity producing machine that is more focussed on the bottom-line than its critical role in the continuing nation-building project. Foreign investment in the print media should lead to improvement of standards, both editorial and technological. More than that, our talented journalists will be able to get more benefits and opportunities.--keralamonitor.com
Indo -UK Youth Exchange Programme 2002
Under Officer Rojib Verghese to represent Kerala
A delegation of National Cadet Corps (NCC) cadets comprising of eight boys and four girls will be leaving for the United Kingdom on July 16, 2002 to participate in the Youth Exchange Programme. NCC is having an ongoing Youth Exchange Programme with UK since 1971 on reciprocal basis.
These cadets will participate in the Air Force Cadets and Army Cadets Camps. They will take part in various training events such as gliding, canoeing, rock climbing and also visit places of tropical and tourist interest during their stay in the United Kingdom.
The members of delegation called on Major General TPS Brar Additional Director General NCC here today. Major General Brar offered them his best wishes and exhorted them to bring glory to the country as young ambassadors of India.
The members of the delegation are Sergeant Mohan Shyam from Karnataka, Senior Under Officer Aditya Vardhan Pathak from Maharastra, Under Officer Rojib Verghese from Kerala, Cadet S Aiyappa Vishwanath from Tamil Nadu, Sergeant Preeti Choudhury from Rajasthan, Sergeant Aparna Deb, Under Officer J Rockson Meeti from North East Region, Company Under Officer Prerna Dubey from Madhya Pradesh, Cadet K Avinash Rao from Delhi, Sergeant Varsha Mathew from Andhra Pradesh, Junior Under Officer Karutharth Patra from Orissa and Cadet Vipul Narain from Jammu and Kashmir.
Government to allocate more funds for libraries.
New Delhi --keralamonitor.com July 12, 2002.The Center has asked the State Governments to allot more funds to libraries, it will raise the matching allocation on its part. Besides this Center has also proposed a network of electronic libraries in rural and interior areas. A project report is being prepared by the Deptt. Of Culture in this regard.
Proposed electronic libraries will be linked to the District and Regional libraries and will provide desired material in regional languages. Once installed the network will be very economical and help in saving expenditure incurred on purchasing books. This was disclosed by Jagmohan, Minister Tourism and Culture while inaugurating a seminar on Role of Book Industry in Collection and Development in Libraries.
Jagmohan said he had already requested members of parliament to allocate at lease Rs. 30 lakhs every year from their Constituency Development Fund to set up libraries in their areas. He said Government would provide all assistance in this regard.
Underlining the importance of quality monitoring in publishing industry Jagmohan said the Book industry should come forward to evolve guidelines in this regard. The Minister also called for immediate review of Center Library Act to ensure better standard of libraries. He said various other steps were being considered by the Deptt. of Culture to start a new library movement in the country.-keralamonitor.com
Seventy kg of gold stolen from Makkah Jewlry Shop
Riyadh -July 12, 2002. More than 70 kilos of gold and thousands of riyals in cash were stolen from missing from Abdul Ghani Saegh Jewelry on Hafaiyiz street showroom in Makkah in the early hours of Wednesday, Al-Nadwa reported on July 11. Interestingly, the burglars installed a tent between the shop and the road as a cover to their operation in which advanced devices were used to break open the door of the shop without drawing the attention of people in nearby houses.
The burgled shop was fitted with the most advanced safety devices like sensitive burglar alarm systems. However, the thieves apparently used some ingenious method and deactivated the alarm system and erected a tent to conceal the operation and keep the noises low, said a newspaper report. Police reportedly failed to trace the culprits in a years-old burglary at another branch of the Saegh 1.5 km away from the location of the present crime At the time thieves used an air-duct to break into the shop.
The loss in kind is worth SR3 million while SR43,000 in cash was also stolen. The showroom was empty of all its precious wares except some cheap items. The loss of jewels and precious metal is roughly estimated at SR3 million though stock is being checked to get a precise picture of the loss. All workers at the shop were interrogated by the police while the location of the theft has been examined by the police and criminal investigation experts. The police have also alerted all the land, sea and air outlets to look for the stolen articles from being smuggled out of the country.
Gulf Malayali wins Consumer Forum Case against Indian Airlines.
Dubai --July 12, 2002. A Keralite passenger of Air India has won a legal battle against the Indian national carrier which has been ordered to pay a sum of Rs25,000 to him towards compensation claims.
George Verghese, a resident of Abu Dhabi, in a petition filed with the Consumer Disputes Redressal Forum, in Pathanamthitta district of Kerala early last year, had complained of alleged acts of omission on the part of the airline. He said that he purchased a ticket, having one-year validity, from the Abu Dhabi office through a travel agent, on the Cochin-Abu Dhabi sector via Mumbai, reported Khaleej Times.
"His return journey from Cochin to Abu Dhabi via Mumbai had to be postponed, but the departure date fell well within the one-year validity period. The airline, however, charged him Rs1565 for rescheduling the dates, insisting that the ticket did not originate from Abu Dhabi, contrary to the fact that it did," the newspaper said. "Further, on the same grounds, the airline refused to provide him hotel accommodation, although his stopover at Mumbai extended beyond 24 hours. The riderless forum, in its verdict dismissed the claim of Air India that the petition is not maintainable under the Carriage of Air Act, 1986,' it added.
The Consumer Forum ruled that Air India is fully entitled to collect the increase in fare as per the terms and conditions of the contract and the prevalent norms and practices, in consideration of the fact that the petitioner chose to change his date of travel. The forum deemed the compensation of Rs200,000 claimed by the petitioner on grounds of breach of trust and contract, mental agony, stress and strain, humiliation and social stigma, and the expenses he incurred in Mumbai, as "too high", while ordering the airline to pay him an amount of Rs25,000 as compensation and Rs1000 as cost of the petition, Khaleej Times report added.
Anthrax infects 10 people in Oromiya region
ADDIS ABABA, 12 July (IRIN) - Ten people have been infected with anthrax following a fresh outbreak of the disease in eastern Ethiopia, officials told IRIN on Friday.
The sick are receiving treatment from the local health authority after coming into contact with the bacteria. It is believed that this is the largest number of people to be infected by anthrax in recent years. It is also extremely rare for humans to become infected, the officials said.
The disease, which has also killed 15 cattle, first broke out in the Fentale district of Oromiya Region, some 200 km from the capital Addis Ababa, about two months ago. The area has also been hit by a serious drought.
Local agriculture officials thought they had brought the disease under control through a major vaccination programme called ring treatment. But, they told IRIN, there had now been a second outbreak and a renewed vaccination campaign was due to start on Friday.
“We have registered 15 cattle dead and 10 people are infected by anthrax but there are no deaths among the human beings,” said Biruk Wolkeba, the district head at the ministry of agriculture. He added that people were undergoing a "mass treatment" in the Benti area where the outbreak occurred.
The International Livestock Research Institute (ILRI) in Addis Ababa said it was extremely rare for people to become infected from cattle.“It is is a deadly disease that is transmittable to human beings but it is very rare for human beings to contract this infection," the institute's Dr Yilma Jobre told IRIN. “It is a very sporadic disease and does not affect the entire herd. It usually just affects one or two animals."
He said every farmer could recognise anthrax, but affected animals were usually slaughtered rather than buried. “This often leads to contamination,” Dr Yilma said. “They should burn the carcass or bury it.” He added that anthrax spores – which are naturally found in the soil – are disturbed by rains then released into the atmosphere.
