BBC India Sold: Indian Company to Produce Content for BBC in India

 Companies exceeding the 26% limit were mandated to adjust their ownership structure to comply with the regulation by October 2021

Digital Desk: In a significant move, BBC India has undergone a transformative shift as it hands over its newsroom publishing license to a private limited company, Collective Newsroom. This marks a historic development, as it's the first time the public service broadcaster has relinquished control to a private entity anywhere in the world. 

Founded by four former BBC employees, Collective Newsroom is set to commence operations on April 10. With a focus on digital content, it will produce news in multiple Indian languages, including English, Hindi, Gujarati, Marathi, Punjabi, Tamil, and Telugu. 

The Foreign Investment policy of the Indian government allows only 26% foreign investment in news digital media, and that is also through verified channels. This rule also says that no foreign entity can keep editorial and management control; editorial and management should be in the hands of resident Indians.

Companies exceeding the 26% limit were mandated to adjust their ownership structure to comply with the regulation by October 2021. Consequently, BBC India opted to transfer its newsroom operations to Collective Newsroom to adhere to the new guidelines. 

The shift also follows scrutiny faced by BBC India, including searches conducted by the Income Tax department at its offices last year. As per the Ministry of Corporate Affairs (MCA), Collective Newsroom Private Limited was incorporated on October 27 of the previous year.

Is BBC India sold?

However, it is also noteworthy that 99.99% of BBC World Service India's shares are owned by its UK-based public broadcaster, NDTV reports. The BBC in India has not been sold in the traditional sense. Instead, its newsroom publishing license has been transferred to a private limited company called Collective Newsroom. This transfer of control allows Collective Newsroom to produce content for the BBC's digital services in India. While this marks a significant change in operational control, the BBC's ownership structure remains intact. So, basically, the BBC found loopholes in the rules.