Cable television industry will now be able to raise funds to upgrade from analogue to digital signals more easily as the government has raised the foreign direct investment (FDI) limit in the broadcast sector to 74 per cent.

The cabinet committee on economic affairs (CCEA) raised the FDI cap to 74 per cent in teleports, direct-to-home (DTH), and services cable networks making efforts towards digitization. But, cable networks that are not upgrading their technology will still be able to get just 49 per cent FDI in their businesses.

Delhi, Mumbai, Chennai and Calcutta are trying to switch to digital cable signals before the end of 31st of October this year, and the rest the country aims to become digital by the end of 2014. For the technology upgrade, cable operators need around Rs 40,000 crore. FDI will make the job quite easier.

NDTV executive vice-chairman K. V. L. Narayan Rao, who is also the president of the National Broadcasters’ Association, described the move as “fantastic news”.

The Centre claimed that raising the FDI cap for the broadcasting sector would lead to improved accessibility of these services.

The government said in a statement, “Enhanced access to foreign investment is expected to expand the reach of broadcasting services, improving accessibility of these services, and bring in international best practices.”

In the TV news channels and FM radio, FDI will remain at its existing limit of 26 per cent.