The cabinet Thursday allowed foreign newspapers to bring out facsimile editions in their original form and not specially designed for Indian readers.

However, while paving the way for the entry of foreign newspapers through facsimile editions, the cabinet kept domestic interests in mind by disallowing the publication of Indian editions of the foreign publications, said Information and Broadcasting Minister S. Jaipal Reddy.

"Indian editions of foreign newspapers are not being permitted due to apprehensions of the Indian newspaper industry that they would not be able to withstand competition," Reddy told reporters after the cabinet meeting, chaired by Prime Minister Manmohan Singh.

"The facsimile editions of foreign newspapers and periodicals will now be allowed to be brought out in India by either an Indian entity, with or without foreign direct investment, or by foreign companies owning the original newspapers provided they get registered in India," said Reddy.

To facilitate the decision, the government would enact necessary statutory changes.

In another decision related to the electronic media, the cabinet has decided to allow flexibility in foreign investment.

"While retaining the 26 percent cap on foreign direct investment, we have decided to allow investments by non-resident Indians, overseas corporate bodies and people of Indian origin and portfolio investments by recognised foreign institutional investors for the news and current affairs segment in electronic media," the minister said.

The cabinet also approved raising the limit of 7.5 percent of syndicated columns from overseas to 20 percent of the total printed area.

For cases above 20 percent, permission would be required from the information and broadcasting ministry on a case-by-case basis, Reddy said.

The minister said these decisions have been taken in the interests of readers as "Indians have the right to information available anywhere in the world in real time".

He said foreign newspapers seeking to bring out facsimile editions could either join hands with an Indian company or register in India with the permission of the ministry and hold 100 percent equity.

Declining to comment on the fact that the International Herald Tribune's (IHT) facsimile is already printed in India, the minister said, "We do not have to make laws keeping in mind a particular paper."

The fact that the new regulation, which would come into effect immediately, would favour IHT is "incidental", he said.

Foreign newspapers bringing out facsimile editions would be subjected to periodic monitoring to ensure that they abide by the guidelines and publish only the original version of the paper as brought out in the home country.

Reddy was of the view that facsimile editions would have limited Indian news content and, therefore, limited appeal.

While not permitted to seek advertisements directly from India, foreign newspapers would not be barred from carrying any Indian advertisements provided they were also published in the original edition, he clarified.