NEW DELHI: The Information and Broadcasting Ministry has strongly objected to the Reserve Bank of India’s decision to allow Reuters, a foreign news agency, to start services in India,
The ministry has pointed out in a letter to the RBI that at the very least it should have been consulted on the issue.
The leer is the latest salvo in the continuing tussle between the J&B and Finance Ministries on the question of whether foreign news agencies should be allowed to directly distribute their services: in India.
So far, news reports and photographs from foreign agencies have been distributed through PTI and 5 UNI. Reuters is keen on directly distributing its services to Indian publications, but the I & B cannot grant it.
Sources said the tussle between the two ministries started in April this year when the Finance Minister allowed two news agencies, “Knight-Ridder” and “Telerate,” to start direct services in India. The rationale was that they would disseminate only financial news, but event s6lahe) starting of permission contravened the existing policy.
Sources also pointed out that the Foreign Investment Board had given permission for an Indian’ edition of the Financial Times of London” last year, without consulting or even informing the I&B Ministry.
The rationale proffered in this” was that the venture was collaboration, with the majority. Share holder being an Indian firm Silver tone Pearson Incorporated, the UK partner, held only 40% equity. Senior I&B bureaucrats are miffed because the I & B Ministry is the nodal Ministry for policy matters relating to foreign news agencies. Under the existing policy, drawn up by the Cabinet almost three decades ago, foreign newspapers and news agencies are not allowed to operate in India.
Article extracted from this publication >> Aug 7, 1992
