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.

NEW DELHI: Prasar Bharati and the Information and Broadcasting Ministry appear to be getting into murkier waters with their justification and replies to Parliament relating to award of coverage of the Commonwealth Games 2010 to SIS Live which in turn outsourced it to Zoom Communications.

In an action taken report presented to Parliament around 18 months after the Games got over, the Parliamentary Standing Committee for Information Technology which deals with I&B Ministry said it wanted to be informed about the reasons for the ?mismatch in the calculation of the cost estimation at various stages?.

Shunglu assumptions on profits based on wrong premise: Ministry

Interestingly, the Ministry says that the report of the High Level Committee constituted by the Government under V K Shunglu based on the premise that SIS Live had outsourced the work to Zoom Communications for Rs 1.77 billion and the two entities made a profit of Rs 1.34 billion (Rs 690 million to M/s SIS Live and Rs 650 to Zoom) is based on wrong premise and facts as it is based on an income tax survey in the middle of the year. .

The Committee took note of the statement by the Ministry that the tender of SIS Live of Rs 2.46 billion was accepted as it was found by the Financial Evaluation Committee of Prasar Bharati to be around 17 per cent lower than the estimate of Rs 2.54 billion (after taking the impact of foreign exchange variations into account) that was approved by the Cabinet Committee for Economic Affairs ?for similar components/activities?.

In its reply, the Ministry said Prasar Bharati had on 3 July 2007 initially forwarded an estimate of Rs 5.57 billion. However, on the basis of Request for Information (RFI), the estimates were brought down to Rs 4.45 billion in the EFC proposal. Finally, the Cost Estimate Committee on 16 May 2008 confirmed the cost estimates of Rs 3.66 billion.

Taking note of this ?mismatch? and the fact that the case was still under investigation by the Central Bureau of Investigation, the Committee said detailed information should be placed before it as soon as the findings are made available to the Ministry.

In its reply, the Ministry admitted that the suspension of then Prasar Bharati CEO BS Lalli was not linked to the Games imbroglio, and gave details of the case registered.

Reiterating its transparency, the Ministry said eight Expressions of Interest applications had been received by the public broadcaster which ultimately forwarded five for issuance of RFP documents. Only two bids were received by the closing date and that of SIS Live was approved. It further said that the Ministry had on two occasions informed the Central Vigilance Commission its reasons for selecting this broadcaster.

The Committee has also taken note of the reply of the Ministry that new amendments are being brought in to improve the relationship between the CEO of the pubcaster and the Government and improve functioning, and expressed the hope that it would be informed about the discussions with the Law Ministry and fate of the amendments in the Cabinet.

Parliamentary Committee observes about loss dilemma between Govt. and pubcaster

In its report last year, the Parliamentary Committee had said it was ?deeply concerned about the controversy?. It is clear that the Information and Broadcasting Ministry seems to be in dilemma about the actual loss on account of broadcasting rights.

What is more, the Committee had noted that neither the I&B Ministry nor Prasar Bharati were aware that SIS Live, United Kingdom, had outsourced the coverage and production to Zoom Communications and this fact came to their notice at ?a later stage?. The Committee was also "surprised to note the opinion given by the Law Ministry that the sub-contract was not in violation of the clause which existed between Prasar Bharati and SIS Live".

The report had said "the fact remains that the contract which SIS Live got from Prasar Bharati for Rs 2.46 billion was outsourced by the entity to Zoom Communications for Rs.1.77 billion. The High Level Committee constituted by the Government under V K Shunglu has estimated the work below Rs one billion."

Prasar Bharati realised gross revenue of Rs 604.8 million through commercial advertisements during the Games held from 3 to 14 October 2010.

NEW DELHI: Prasar Bharati has spent a sum of Rs 20.43 million to pay former Supreme Court and High Court judges to act as arbitrators to recover claims in 27 cases.

Parliament was told by Minister of State for Information and Broadcasting C M Jatua that the amount sought to be recovered was Rs 3.95 billion.

The Minister said that Prasar Bharati had said that in view of the arbitration clause inserted in the agreements, the matters could not have been taken before other judicial authorities.

In another reply, the Minister said that a sum of Rs 8.43 million had been recovered by encashing bank guarantees relating to 11 defaulting producers since 2010. These included two cases each of PAS International and Art Advertising, and one each of Pritish Nandy Communications, Liazo of Kolkata, Signet Communication, Mast Media, Joel Advertising, TBWA Anthem, and PSI (Population Services International).

Proceedings were also initiated against Fame Communicatiins (Cinevista), Creative Channel, and Nimbus Communication for a total principal amount of Rs 331.10 million and interest till date of Rs 193.59 million.

A single bench of the Bombay High Court had in July 2002 directed Nimbus to pay a sum of Rs 763.42 million along with interest at 18 per cent per annum on the principal sum of Rs 62.80 million with effect from 1 September 1998. The broadcaster?s case is pending before the Court but it has paid a sum of Rs 30 million and furnished a bank guarantee of Rs 40 million to the Court in terms of its order.

NEW DELHI: The Information and Broadcasting Ministry?s total plan and non-plan budget for 2012-13 has risen marginally to Rs 27.37 billion compared to Rs 26.44 billion last year and the revised estimates of Rs 26.05 billion.

The allocation for the Ministry includes an outlay of Rs 935.5 million for projects in the north eastern part of the country including Sikkim.

The allocation under the head ?Secretarial-Social Services? has been doubled to Rs 1.27 billion as against the revised estimates for last year of Rs 639.8 million and the 2011-12 allocation of Rs 754.5 million. This will also be spent towards the centenary celebration of Indian cinema, the National Film Heritage Mission, the proposed National Centre for Animation and Gaming, and anti-piracy activities.

With the government reiterating that it will adhere to the sunset date for switching off analogue, this allocation could help create the infrastructure and also awareness about the benefits of digitisation.

The allocation for Press Information Services which includes grants to the Press Council of India has been lowered to Rs 588.9 million from last year?s Rs 592.4 million and the revised estimates of Rs 543.4 million, to meet the expenses for the Press Information Bureau, the Press Council of India, and for running the non-aligned countries news pool.

The allocation to the Electronic Media Monitoring Centre has been marginally reduced to Rs 43.8 million from the revised estimates of Rs 42.8 million in 2011-12 (as against the Rs 45 million allocated in the budget last year). The EMMC was set up for monitoring television and radio channels for violation of programme and advertising codes.

The allocation for advertising and visual publicity has been raised to Rs 1.66 billion as against the allocation last year of Rs 1.23 million, following the increase in the advertising rates of the Directorate of Advertising and Visual Publicity.

Meanwhile, for the third year in a row, the government has not announced any investment in the National Film Development Corporation.

The grant-in-aid to Prasar Bharati in the budgetary allocation of the Ministry has been increased to Rs 15.74 billion as against Rs 14.84 billion in 2011-12 and the revised allocation of Rs 15.74 billion.

However, there is increase in the Ministry?s investment in Prasar Bharati: with Rs 4.01 billion in the plan outlay and an additional Rs 4 billion in the non-plan outlay as against last year?s total investment of Rs 3.8 billion which was revised later in the year to Rs 2.76 billion.

Prasar Bharati sources told indiantelevision.com said this had been done to meet the extra expenditure on salaries which has fallen on the shoulders of the Government since all Prasar Bharati employees who were in employment as on 5 October 2007 have been given deemed deputation status.

While the grant-in-aid is to cover the gap in resources for meeting revenue expenditure, the investment is to finance the capital expenditure of the pubcaster.

However, despite the reference in his speech to the centenary of Indian cinema, Finance Minister Pranab Mukherjee has announced a drastic cut in the budget for the film sector in the Ministry.

The budget for the film sector for 2012-13 is Rs 841.1 million as against the allocation of Rs 1.37 billion and revised estimates of Rs 1.34 billion. There is an additional outlay of Rs 66.7 million towards certification of cinematographic films.

NEW DELHI: Prasar Bharati has earned revenue of Rs 10.38 billion for the first nine months of this fiscal.

The commercial revenue by Doordarshan and All India Radio during the nine-month period under review was Rs 7.48 billion and Rs 2.45 billion respectively while Rs 444 million came from ?other resources?.

For the fiscal ended March 2011, net revenue stood at Rs 12.71 billion (subject to reconciliation), of which Rs 9.44 billion came from DD and Rs 2.76 billion came 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 went up to Rs 27.45 billion, out of which Rs 14.69 billion was that of Doordarshan.

According to Minister of State for Information and Broadcasting S Jagathrakshakan, the increase in the operating cost can be attributed to the hike in the salary of employees following the 6th Pay Commission.

Jagathrakshakan also said a Group of Ministers had suggested financial restructuring of the Prasar Bharati and that all operating expenses should be borne by the Broadcasting body?s internal revenues.

The GoM also said that for the five years from 2011-12 to 2015-16, Government Non-Plan support would be extended for meeting the total expenses on salary and salary-related expenses and augmentation/replacement of capital assets.

NEW DELHI: Information and Broadcasting Minister Ambika Soni said Saturday that the appointment of a new chief executive officer for Prasar Bharati - Jawhar Sircar ? would result in expediting all pending issues in the pubcaster, especially those related to employees.

Vacancies in Doordarshan and All India Radio would be filled and efforts will be made to make all stations and those in the border areas functional, Soni said.

"While maintaining the autonomous structure of Prasar Bharati, I want issues related to staff resolved because they have been pending for a very long time," Soni told reporters here.

"We have recently formed recruitment rules after forming a recruitment board. We are now awaiting the clearances from the Department of Personnel and Training. So wherever there are slots vacant, they should be filled urgently," she added.

"More programmes should be generated in local languages and Doordarshan and Akashvani should reflect a picture of the entire country," Soni said.