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Magadh Today - Beyond Headlines > Latest News > Business > After tax searches, FDI questions, BBC hives off newsroom in India as separate company
Business

After tax searches, FDI questions, BBC hives off newsroom in India as separate company

Gulshan Kumar
Last updated: 2024/04/07 at 8:10 PM
By Gulshan Kumar 1 year ago
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Less than a year following scrutiny from Income Tax authorities, the BBC has undergone a significant restructuring in India, marking a departure from its traditional operational model. The broadcaster has transferred its newsroom responsibilities to a newly formed private limited company, a move unparalleled in the global landscape of the public service broadcaster.

Effective next week, the “Collective Newsroom,” established by four former BBC employees, will undertake the production of all India-focused content for the BBC’s digital platforms in seven languages, including Hindi, Gujarati, Marathi, Punjabi, Tamil, and Telugu.

Remarkably, the BBC has sought approval from the Indian government for a 26% stake in this private limited company, signaling a pioneering approach within its international operations.

In an exclusive conversation with The Indian Express, Rupa Jha, Chief Executive Officer of the Collective Newsroom, emphasized the unprecedented nature of the BBC’s decision to entrust its publishing license to an external entity. Jha affirmed the unwavering commitment to journalistic integrity, with the BBC extending its full support to the endeavor.

The restructuring of the BBC’s operations in India comes in response to the evolving regulatory landscape, particularly the introduction of stringent Foreign Direct Investment (FDI) rules in 2020. The imposition of a 26% FDI limit in India’s digital media sector prompted the broadcaster to reassess its ownership structure.

Previously, the BBC managed its editorial operations in India through BBC India, with over 99% ownership held by the UK-based broadcaster. However, the regulatory changes necessitated a reduction in foreign investment to comply with the stipulated FDI limit by October 2021.

The BBC’s presence in India spans over eight decades, with its India bureau comprising approximately 200 employees, making it the broadcaster’s largest operation outside the United Kingdom. Despite facing regulatory hurdles and recent tax-related challenges, the BBC remains steadfast in its commitment to maintaining its foothold in the Indian media landscape.

Jonathan Munro, Deputy CEO of BBC News, lauded the formation of the Collective Newsroom as a continuation of the broadcaster’s audience-centric approach, reaffirming its longstanding commitment to delivering quality journalism.

For now, the transition to the Collective Newsroom has seen nearly 200 employees of BBC India seamlessly transitioning to the new entity, ensuring continuity in operations.

The establishment of the Collective Newsroom marks a pivotal moment in the BBC’s trajectory in India, reflecting its adaptability in navigating regulatory complexities while upholding its journalistic ethos.

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