Financial restructuring of Prasar Bharati under inter-ministerial consideration

NEW DELHI: The Information and Broadcasting Ministry has prepared a cabinet note to bring about financial restructuring of Prasar Bharati and ensure all operating expenses should be borne by the Broadcasting body?s internal revenues.

The Note will come up before Union Cabinet soon as inter-ministerial discussions on the same are in their final stages.

The note is based on recommendations of a Group of Ministers attached to Prasar Bharati, which suggested that Government Non-Plan support should be extended for meeting the total expenses on salary and salary-related expenses and augmentation and replacement of capital assets for the five years from 2011-12 to 2015-16.

The GoM had also recommended that accumulated arrears of space segment and spectrum charges up to 31 March 2011 should be waived.

Section 22 of the Prasar Bharati Act 1990 should be restored in its original form to exempt the pubcaster from paying any income tax.

All loans paid to the public service broadcaster should be converted into grants-in-aid, the GoM had said, adding that interests accrued on the loans should be waived.

Prasar Bharati?s revenue stood at Rs 10.38 billion for the nine-month period ended 31 December 2011. The commercial revenue by Doordarshan and All India Radio during this period was Rs 7.48 billion and Rs 2.45 billion respectively while Rs 444 million came from ?other resources?.

In 2010-11, Prasar Bharati?s revenue climbed to Rs 12.71 billion, from Rs 11.46 billion a year ago. Out of the net revenue, Rs 9.44 billion came from DD and Rs 2.76 billion from AIR as net commercial revenue. A total of Rs 505.8 million came from other resources.

Prasar Bharati?s operational costs during fiscal 2010-11 rose to Rs 27.45 billion, out of which Rs 14.69 billion was for Doordarshan. The increase in the operational cost has been attributed to the hike in the salary of employees following the 6th Pay Commission.