Category: Specials

Budget 2015: Sops for entertainment sector; TV sets, computer tablets made cheaper

NEW DELHI: Perhaps because he is also holding the Information and Broadcasting portfolio, Finance Minister Arun Jaitley, on Saturday, announced certain concessions long sought for by the entertainment industry.

While presenting the Budget 2015-2016, Jaitley announced that exemption to services provided by a performing artist in folk or classical art form of music, dance, or theatre will be limited only to such cases where amount charged is up to Rs 1,00,000 per performance (except brand ambassador).

He also announced exemption of service tax for service provided by way of exhibition of movie by the exhibitor/theatre owner to the distributor or association of persons consisting of exhibitor as one of its members.

However in a review of the Negative list, which specifies items are exempt, he said service tax will be levied on the service provided by way of access to amusement facility such as rides, bowling alleys, amusement arcades, water parks, theme parks, etc.

Service tax will also be levied on service by way of admission to entertainment event of concerts, non-recognized sporting events, pageants, music concerts and award functions, if the amount charged for admission is more than Rs 500.

At the same time, service by way of admission to exhibition of the cinematographic film, circus, dance, or theatrical performances including drama, ballets or recognized sporting events shall continue to be exempt from tax.

With an aim to get reduction in Basic Customs Duty in order to cut the cost of raw materials, Jaitley said high-density polyethylene (HDPE) for use in the manufacture of telecommunication grade optical fibre cables is being reduced from 7.5 per cent to Nil.

The customs duty on black Light Unit Module for use in the manufacture of LCD/LED TV panels from 10 per cent to Nil and on organic LED (OLED) TV panels from 10 per cent to Nil.

By way of reduction in duty on certain inputs to address the problem of duty inversion, he included parts and components of Digital Still Image Video Camera capable of recording video with minimum resolution of 800×600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum storage (including the expanded) capacity.

Basic Customs Duty on Digital Still Image Video Camera capable of recording video with minimum resolution of 800×600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence, using the maximum storage (including the expanded) capacity is being reduced to Nil. Basic Customs Duty on parts and components of these cameras is also being reduced from five per cent to Nil.

Excise duty structure on certain goods is being restructured on mobiles handsets, including cellular phones from one per cent without Central Value Added Tax (CENVAT) credit or six per cent with CENVAT credit to one per cent without CENVAT credit or 12.5 per cent with CENVAT credit. NCCD of one per cent on mobile handsets including cellular phones remains unchanged.

Excise duty on tablet computers is being restructured from 12 per cent to two per cent without CENVAT credit or 12.5 per cent with CENVAT credit.

February 28, 2015
Major strides in National Fibre Optic Network programme, Digital India: Jaitley

NEW DELHI: Finance Minister Arun Jaitley said on Saturday, that the National Optical Fibre Network Programme (NOFNP) of 7.5 lakh kms networking 2.5 lakh villages is being further speeded up by allowing willing states to undertake its execution, on reimbursement of cost as determined by Department of Telecommunications.

Andhra Pradesh is the first state to have opted for this manner of implementation.

Jaitley also said that the ‘Digital India’ programme had been announced to take technology from grassroot to the space and make India a knowledge and innovation based society with broadband connectivity being taken to all villages.

He said in his budget for 2015-16 that India has a well-regarded and world-class IT industry with revenues of about $150 billion, over $100 billion of exports, employing nearly 40 lakh people directly. The country was ‘now seeing a growing interest in start-ups.’

“Experimenting in cutting edge technologies, creating value out of ideas and initiatives and converting them into scalable enterprises and businesses is at the core of our strategy for engaging our youth and for inclusive and sustainable growth of the country. Concerns such as a more liberal system of raising global capital, incubation facilities in our Centres of Excellence, funding for seed capital and growth, and ease of doing business etc. need to be addressed to create lakhs of jobs and hundreds of billion dollars in value,” he said.

With this objective, the government will establish a mechanism to be known as SETU (Self-Employment and Talent Utilisation). SETU will be a Techno-Financial, Incubation and Facilitation Programme to support all aspects of start-up businesses, and other self-employment activities, particularly in technology-driven areas. Jaitley set aside Rs 1,000 crore initially in NITI Aayog for this purpose.

February 28, 2015
Budget 2015: Futuristic and progressive, feels media industry

MUMBAI: If Suresh Prabhu’s Rail Budget spelt out a pro – poor stanza, then Arun Jaitley has recited a pro-poor poetry while presenting the Union Budget.

With burdens of expectations and aspirations, the Finance Minister started his presentation at 11 am on 28 February. As it is said ‘the morning shows the day,’ his initial sentences enlightened poor of the country. With pension and health insurance schemes, the government successfully managed to add smiles to the below middle class society. Jaitley’s pro-poor, pro-growth and pro-reform mantra followed throughout the budget. Sanitization, minority education, preservation of heritage sites, job creation and empowerment of youth were given supreme priority.

Viacom18 Media group CEO and CII National Committee on Media & Entertainment chairman Sudhanshu Vats said, “Two words sum up the essence of Budget 2015: balance and clarity. Finance Minister Arun Jaitley walked the tightrope by staying away from big bang announcements that might have strained the fiscal position, while taking substantial steps on matters of tax, social security and public investment (especially in Infrastructure). On the reduction in corporate tax rates to 25 per cent, the 4-year implementation roadmap is a welcome addition. This is the clarity that the corporate sector needs so far as tax policy is concerned. While personal income tax slabs remain unchanged, higher exemptions are targeted towards savings and would add to retirement income in taxpayers’ wallets. ‘Wallets’ too will don a different connotation given the FM’s vision for a cashless society. The clarity on corporate tax road map is a welcome development for investments in the Indian M&E sector.”

He further added, “The reduction in withholding tax rates (to 10 per cent) on royalty and FTS payments to non-residents has finally been granted. The increase in service tax is probably to bring the rate closer to the rates expected under the GST regime. In that context, the step is the proverbial bitter pill for our industry. I must compliment the FM for his announcement of social security schemes for the vulnerable sections of society as a vital cornerstone towards inclusive growth and development. All in all, this is a ‘Make in India’ budget that will truly ‘Make India’.”

ZEEL CEO and MD Punit Goenka congratulating Jaitley said, “Indeed a futuristic and growth oriented Super Budget presented by Arun Jaitley! The Budget has certainly addressed the overall tax concerns and has portrayed a positive picture for the investors! It is certainly a Budget to remember for the Common Man, since it has remarkably addressed all the key aspects like housing, jobs & education! Congratulations Arun Jaitley for wonderfully addressing the nation’s concerns through the Budget 2015 & for setting some key goals for 2022!”

Reduction of corporate tax, increase in service tax and abolition of wealth tax with a surcharge of two per cent for income over Rs 1 crore was the eyebrow raiser for the corporate industry. But the line that will be music to many industrialists was, “abhi permission lene me hi saalo beet jaate hain, project shuru bhi nahi hota” (it takes years to get the necessary permissions and the projects don’t take off), which signifies minister’s inclination towards establishing a business friendly environment. He also spoke about forming a pre existing regulatory mechanism to ensure fast and transparent business market.

According to Reliance Broadcast Network CEO Tarun Katial, the budget is positive, realistic and progressive in nature. “The overall budget seems to be well thought of with a holistic approach and some key announcements for the service industry. The proposed reduction in corporate tax over the next four years is encouraging as it will result in higher investments, growth and more jobs creation. The move to increase the service tax however will put smaller advertisers under pressure and hamper advertising spends. The move on CSR is good and radio can be used effectively as a catalyst for social transformation in initiatives like Swachh Bharat, since radio can reach to the remotest of the corners where no other medium does because of literacy and cost issues, especially so with phase III and deeper reach. Overall a very good budget and I congratulate the Government for presenting us with a good futuristic budget.”

The level of expectations and aspirations were visible in share market too. Both Sensex and Nifty soared before Jaitley’s presentation. The market was waiting for some big announcements and reduction of corporate tax was one of them.

The major outlines of the budget include:

Policy Reforms

· Create a universal social security system for all Indians

· Commodities regulator to be marched with SEBI

· New bankruptcy code in 2015/16

· Promise to amend the RBI act this year and provide for a monetary policy committee

· To set up public debt management agency

· To raise visa-on-arrival facility to 150 countries from 43

Taxation

· To implement goods and services tax by April 2016

· To increase service tax to 14 per cent

· Reduction in corporate tax to 25 per cent from 30 over next four years

· Wealth tax to be abolished, but a surcharge of two per cent for ‘Super Rich’ earning over Rs 1 crore

· Plans to introduce direct tax regime that is internationally competitive on rates without exemptions

Fiscal Deficit

· Fiscal deficit seen at 3.9 per cent of GDP in 2015/16

· Challenge of achieving fiscal target of 4.1 per cent of GDP

· Commitment to meet medium term fiscal deficit target of three per cent of GDP

· Current account deficit below 1.3 per cent of GDP

· Need to keep fiscal discipline in mind despite need for higher investment

Growth

· GDP growth seen at between 8 – 8.5 per cent

· Aiming double digit durable growth rate, achievable soon

Inflation

· Consumer inflation to remain close to five per cent by March, opening room for more monetary policy easing

· Monetary policy framework agreement with the RBI clearly states objective of keeping inflation below sic per cent

Investment

· Propose to do away with different types of foreign investment and replace them with composite caps

· To allow foreign investment in alternative investment funds

February 28, 2015
Sports broadcasters expect reforms from budget 2015

MUMBAI: Private sector is one of the largest contributor to Indian economy and the first step towards economic reform would be making an investor friendly scenario. With a vast market like India if private sector is refraining from investing then there are certain issues at the bureaucratic level, which are hampering the economic growth. In such a scenario the biggest challenge is to garner trust, not by compromising with national security and independence but by policies. Policies that rejuvenate investors to invest and expand. Be it in Madison Square or Sydney Allphones Arena, the entire Indian diaspora was promised a better business friendly India by Prime Minister Narendra Modi, which laid foundation to skyscrapers of aspirations.

Now emphasising on the current business workflow in India, a company has to abide by both central and state laws, which turns out as an obstacle. Moreover government often intervenes in the financial and strategic affairs of a private company. Sports broadcasting industry is one of the sufferer of such obligations. Broadcasters purchase content from firms by paying the amount demanded, but while producing the content they are forced to follow certain regulations, which indirectly decides how much should be charged for the content.

Opposing such intervention Ten Sports CEO Rajesh Sethi told Indiantelevision.com, “In India, private sector is a huge contributor to the economy and with digitization process in its final stages sports media can play a key role in economic growth provided we are backed with business friendly policies. The mandatory sharing of sports feed is something that directly hits us, though it’s not an issue related to the budget, I would certainly like the government to look into such issues. Moreover, we purchase content from somewhere by paying certain amount and regulations restricts us when it comes to selling it. So the next level of de-regularisation or de-tarrifisation is something that I expect from this budget. I have high expectations from Arun Jaitley as he is someone who has immense knowledge of finance and economics and understands the problems that we are facing. He has delivered so far and I hope he does in this budget too.”

That somehow sums up the private sports broadcasting industry’s aspirations from budget and Jaitley.

The perspective of government broadcasting sector came from Doordarshan (DD) deputy director general C K Jain. Hailing the concept of Make in India he insisted that the government should reduce dependence on Chinese products. “I expect the government to remove service taxes from advertisements as we also have the same functions and responsibilities. Also I would request the government to treat us as a government entity and exempt us from various taxes and liabilities. From sports perspective, service tax on advertisements is certainly a botheration and should be dealt with.”

Sharing his personal expectation Jain added, “Make In India has the potential to play a key role in economic growth provided government pays special attention to it. The local manufacturers need to be backed financially with loans and tax rebates. The poor of the country needs to be benefited from the budget, as the goal is to uplift the poor to middle class, which will reduce the dependence in subsidies. If subsidies are reduced government will have more money which they can spend other important sectors.”

The Finance Minster has been criticised as pro private sector in recent past after he decided not to intervene in a legal battle between DD and Star regarding World Cup. The Sports Act of Prasar Bharati forces private channels to share feed of any event of international importance with pubcaster DD, which enables them to showcase it live. Now the act was brought to ensure that one who cannot afford private channels gets access to events of such magnitude. Which is a fair call considering every citizen in the country has a right to information and should not miss the World Cup or Olympics as they cannot afford private channels. The problem is with sharing the feed with cable subscribers. BCCI, Nimbus Communications and the two sports channels (ESPN and Star) went to court with a plea that no cable television network could broadcast such sports events without a licence from the content owners.

In an affidavit, Star Sports had said that it was losing around Rs 290 crore every year by sharing its sports signals with Doordarshan and was expecting to lose around Rs 120 crore by sharing the telecast of the World Cup this year. Under the Act, the rights holder gets 75 per cent of the revenue from the telecast on DD. The remaining 25 per cent is retained by DD.

While Jaitley plans to increase GDP and reduce fiscal deficit through his financial proposal and policies the entire nation’s eyes and ears are glued to his words even as you read this report today (28 February, 2015) with immense expectations and aspirations. It remains to be seen if Jaitley and company makes it or breaks it.

February 28, 2015
Union Budget 2015-16: Govt proposes film production & gaming centre in AP

KOLKATA: For the North Eastern states, a centre for film production, animation and gaming will be set up in Arunachal Pradesh said Indian Finance Minister Arun Jaitley, while presenting the Union Budget 2015 in Lok Sabha on Saturday.

The proposal by the Minister has been given a thumbs up by the industry players as they feel that Arunachal Pradesh should get promoted. “It is an encouraging step, no doubt about it,” said a media executive.

The blueprint might state in details all plans of the government for the film production, animation and gaming centre.

The government is also likely to launch a National Skills Mission through the Skill Development and Entrepreneurship Ministry. Jaitley said that the Mission will consolidate skill initiatives spread across several ministries. It will allow the government to standardize procedures and outcomes across 31 Sector Skill Councils, he added.

“India is one of the youngest nations in the world with more than 54 per cent of the total population below 25 years of age. Yet today less than five per cent of our potential workforce gets formal skill training to be employable and stay employable,” said Jaitley.

An Apprenticeship Training Institute for Women will be set in Haryana and Uttarakhand during the year 2015-16.

To enable all poor and middle class students to pursue higher education of their choice without any constraints of funds, a fully IT based Student Financial Aid Authority is proposed to be set up during the year 2015-16.

It will administer and monitor scholarships as well as Educational Loan Schemes, through the Pradhan Mantri Vidya Lakshmi Karyakaram to ensure that no student misses out on higher education for lack of funds.

Jaitley announced that the government will launch all India Institute of Medical Sciences (AIIMS) in Jammu & Kashmir, Punjab, Tamil Nadu, Himachal Pradesh and Assam in the fiscal year 2015-16.

Similarly, to augment Medical Sciences in Bihar, another “AIIMS like” institute is proposed to be set in the state.

In his Budget Speech, the Finance Minister also proposed to set up an IIT in Karnataka and upgrade Indian School of Mines, Dhanbad into a full-fledged IIT.

February 28, 2015
Bloomberg TV India analyses Budget 2015

MUMBAI: The Narendra Modi government will present its first full and possibly most crucial budget on 28 February, 2015. As it earnestly works towards the revival of the Indian economy, the most anticipated question on everyone’s mind is ‘Will the Government Make or Break the Economy?’

To share the views on the same, Bloomberg TV India has come up with a special budget-programming segment titled Budget 2015 – Make or Break.

The year 2015 brings with it sky-high expectations from the new government, which is poised to make breakthroughs that will re-ignite investments and take the economy back to a robust GDP growth.

The government has announced numerous initiatives and reforms- key amongst them being the ‘Make in India’ program, which will boost manufacturing and job creation, digitization programs to increase the use of technology across the country, and the implementation of GST.

For Union Budget 2015, Bloomberg TV India has laid out a comprehensive line-up of special shows which will showcase the best-in-class insights, analyses, reports, debates and interviews appealing to a large spectrum of audience – global and domestic influencers, business leaders, foreign institutional investors, retail investors and the common man.

The Pre-Budget programming started early January, by hosting leading Indian corporate leaders from across the sectors, policy experts and economists on their expectations from Budget 2015.

The big highlight of the Pre-Budget programming includes featuring the point of view of Global Market Movers on what India’s financial markets need, and what they hope to see in Budget 2015.

Apart from covering the FM speech Live, the special coverage on Budget Day and Post-Budget will include reactions and insights on the impact of Budget 2015 from an enviable line-up of global and Indian market movers and thought leaders, along with detailed analysis of major announcements by the best-in-class editorial minds in the business news genre namely Siddharth Zarabi, Harsha Subramaniam and Mini Menon.

Bloomberg TV India executive editor Siddharth Zarabi said that this year it has planned its budget programming with an outlook towards generating content that will appeal to both domestic and global investors.

He further added that in recent times, he has seen a staggering flow of foreign institutional investments in India making FIIs the pillars of Indian market thus it’s very important to know the views of global FIIs. “Therefore we would be capturing the views of these FIIs across Hong Kong, London, Singapore and New York on the budget, which will be one of the key focuses of our budget programming,” he said.

Overall, the Budget programming initiative of the channel will cater to a large and diverse audience – global and domestic influencers, business leaders, foreign institutional investors, retail investors and the common man.

Bloomberg TV India EVP Alok Nair said, “Bloomberg TV India is the only Indian business channel viewed Live on the Bloomberg terminal across 150 countries delivering over 3.75 lacs global individuals who are way high on the influence quotient. We were the first to start the intense Budget programming from January, 2015 with Ideas for transforming India.”

As part of the extensive budget programming, the channel had done an exclusive spectacular Live TV event with Jayant Sinha engaging and answering the FIIs across the world.

“This was a first in a series on Invest in India theme. This year’s Budget day promises to deliver insightful content and analysis with the screen graphics tailor made to suit the viewer requirement. The channel is poised to deliver an impact perspective on budget day for audiences across FIIs, corporate India and investors. Our focus is on the new economy entrepreneurs in a significant manner. With our enviable editorial team strength led by Siddharth, Mini and Harsha, Bloomberg TV India is all set to engage with the best minds in India during budget,” Nair added.

February 26, 2015
Online start-ups pin hopes from Budget 2015

MUMBAI: The Digital India idea conceptualised by Prime Minister Narendra Modi has caused some excitement within established and start up companies in the technology and e-commerce space. Some of these start-ups are of the belief that Budget 2015 will be the start of a new era of higher growth.

It may be also recalled that Finance Minister Arun Jaitley had invited CEOs of Indian software and hardware companies for a meeting along with various e-commerce companies and prominent start-ups for pre-Budget consultations in January this year. Online start-ups like iTiffin.in, iSpyprice.com and Youshine.in are some of these start-ups that have raised their hopes ahead of the upcoming budget.

iTiffin.in (Intelligent Tiffin) CEO and co-founder Tapan Kumar Das is of the opinion that ‘Nutrition services and Health food,’ should be brought under the gamut of health services, thus qualifying those services for service tax.

According to Das, the cost of healthcare in the country should be reduced in order to regulate the increasing number of lifestyle disorder cases in India. He further wished that food technology is made free of import duty and income tax benefits are allocated to the Nutrition and Health Food sector. “I also wish that people are recruited from the skill development academy while Nutrition and Diet plan services should be brought under Mediclaim policy of General Insurance,” he said.

On the other hand, price comparison website, iSpyPrice.com founder and director Suresh Sharma desires that GST (Goods and Services Tax) is implemented in the budget for this year as he feels it will solve various taxation issues. Besides this, he stated that if service tax on online advertisements is abolished, it would motivate internet-based publishing companies to create more valuable content and application for websites. Sharma said that the government should give proper clarifications on service tax levied on advertising income that is earned by Indian publishers in foreign currency. Also, he hoped that MAT (Minimum Alternate Tax) is abrogated from the e-commerce landscape.

Meanwhile, VIA.com chief executive officer Swaminathan Vedaranyam said that as far as the travel industry is concerned, there is an urgent need for well-defined policies and clear commitments to ensure that all cultural heritage points are given more attention with improved infrastructural facilities. “There is a recent spurt in domestic travel as well as a higher influx of foreign tourists in India and with dedicated upkeep of the tourist hotspots, we can ensure higher growth for the travel industry,” he informed.

On a concluding note, he wished for allocation towards revitalising all unused airports in tier II and III cities as, according to him these geographies hold immense potential today.

February 26, 2015
‘Budget 2015’ is a budget of aspirations: News broadcasters

MUMBAI: A government with absolute majority backed by historical mandate is certain to garner huge aspirations. And now it’s time to meet the expectations that National Democratic Alliance (NDA) has been building in every Indian since the time the Narendra Modi led BJP started campaigning for 2014 Lok Sabha elections. As 28 February spells out major economical initiatives, Indiantelevision.com asked the news broadcasters fraternity about their expectations from Arun Jaitley and his ministry.

Talking about the aspirations from budget 2015, NDTV CEO Vikram Chandra told Indiantelevision.com, “We don’t have any specific set of aspirations. We are hoping for action to sort out the distribution business model and increase in subscriptions but that isn’t directly linked to the budget of course.”

The finance ministry has often earned praise from experts and economists for growth oriented thoughts. Some of the thoughts were implemented of which the defense sector is one. But the media fraternity has not been offered anything more than encouraging word.

Times Group CEO M K Anand feels that the budget should build confidence and not dampen the positivity. “Media business has a direct positive correlation with the economy. What’s good for the economy will be great for advertising. This budget is probably the most awaited in Indian history. This is the single biggest optical event that will signal to the electorate and investors that this government will change things. My expectation is simply that the budget should maintain the confidence built on it and not dampen the positivity around India. And all indications are that we won’t be disappointed. I am looking forward to a great next year,” he said.

Jaitley, who is also heading the Information and Broadcasting Ministry, is expected to understand issues plaguing the media industry. In recent past the Minister commented against the ad cap and favoured increase in FDI, which increased the level of aspirations.

News Nation network CEO R K Arora feels that it’s high time for the government to deliver as the media industry has not been paid attention to in recent times. “With budget comes many expectations and we wish a lot of things, sometimes they are fulfilled and sometimes we are disappointed. This year the prime expectations from budget would be increase in FDI. All the channels need more revenue for expansion and 26 per cent of foreign investment is certainly not enough so if it should be increased to 49 per cent to ensure proper development of news channels. Moreover, we also pay a hefty 12.36 per cent service tax through which government earns a lot of revenue. I would be glad if it is reduced to 10 per cent,” Arora opined.

India has a formidable team taking care of finance and commercial affairs with Jaitley, Jayanth Sinha and Nirmala Sitharaman in it. The team’s credibility cannot be questioned in terms of education or understanding of the subject that they are dealing with. The trio and the bureaucrats working under them have often been recognised as the best team in the Modi government. One of the biggest decisions they took was the inception of Neeti Ayog and the choice of its leaders.

News Broadcasters Association honorary treasurer and News24 chairperson cum managing director Anurradha Prasad feels a business friendly atmosphere should be developed where one does not have to go through numerous layers of officiating. “Firstly, economy should be in the growing mode and once we have good economic growth, every sector will improve. Secondly, the structure of business in India should be rationalised. There are too many layers now, which can be transmitted into a single window. Thirdly, we would like the government to push the retail sector, as news channels are directly dependent on the retail sector. Additionally, our constant demand has been an increase in FDI to at least 49 per cent in News and Radio.”

Focus News managing director Sailesh Kumar asserted, “The industry is waiting for an announcement in FDI in news. There are not many investors ready to invest in this industry, which is in desperate need of growth and that cannot happen without money. Distribution stream is an issue all over and it needs to be sorted out. Moreover, service tax has to be rationalized as we use numerous equipments and pay tax for all separately. The percentile of tax varies from place to place, which is total injustice.”

NewsX Editor–At –Large (Roving Editor) Athar Khan expects the FM to announce a budget that is conducive for the growth of the economy. He said, “We are looking forward to a possible increase in Foreign Direct Investment (FDI) cap in media houses and conglomerates. FDI in news and the digital space has been promised, mulled and discussed by various Governments over the years however, never delivered. An increase in the FDI ceiling will potentially bring in large investments in the sector, which in turn will benefit not just the companies but also has the potential to boost salary structures in the industry bringing them at par with international standards. Concessions in service tax for media houses is another aspect we can look forward to. The possibility of an earlier roll out of the GST (GOODS & SERVICES TAX) by this Government is also something that we are hoping for. A streamlined tax structure will benefit the industry immensely. The Government can also look into giving the broadcasting sector infrastructure status on the lines of the telecom sector. A boost for the manufacturing sector will be welcome too as television sets, set top boxes and other products related to the media and entertainment industry can also indirectly help the industry’s augmentation. We can also expect some more channels to be launched as the I&B minister has already shown interest in a Government owned channel as proposed by the previous Government. If the growth is robust, as promised by the Modi Government then the advertising budgets of big corporates would also see an increase which will enhance the ad revenues for the channels which is the sole source of revenue for the broadcasting industry.”

The media industry awaits set rejuvenating declarations from the finance ministry. It now remains to be seen if Jaitley and team meet expectations and successfully fulfill their aspirations.

February 26, 2015
Budget 2015- Returning Indian economy to the path of explosive growth

MUMBAI: With Budget 2015, the entire nation awaits with hope. As Railway Minister, Suresh Prabhu and Finance Minister, Arun Jaitley present the Rail and Union Budget on 26 and 28 February respectively, nearly every economic indicator is favourable – inflation is down, so are crude oil prices, foreign exchange reserves are at a peak and foreign investors are interested again in India’s stock markets.

So, what will Prime Minister Narendra Modi and his team do to return India to the oath of exponential growth?

To decode this much-awaited budget, CNN-IBN and IBN7 will bring rolling coverage on the Rail Budget and Union Budget 26 February (today) and on 28 February, respectively, under the aegis of the specially branded shows Modi Express & The Modi Budget on CNN-IBN and Prabhu Ki Patri & Jaitley Ki Potli on IBN7.

These will be a culmination of a series of pre-budget shows that both channels have been running capturing the mood, expectation and suggestions from a cross-section of individuals from corporate to entrepreneurs to students. With more than 18 hours of live programming on each channel, the network is all set to be the one stop destination for viewers to know everything about the upcoming budgets.

The finest editorial teams of both the channels including Bhupendra Chaubey, Sumit Awasthi, Karma Paljor, Shereen Bhan, Sanjay Pugalia and Anubha Bhonsle will bring budget updates, public reactions and impact assessment.

They will be joined by the country’s most formidable economists and commentators including former member-traffic, railway board SB Ghose Dastidar, Concor/Container Corporation of India founding CMD Raghu Dayal, former additional member, planning, railway board Sumant Chak and Smartwave railway expert / CEO Sanjeeva Shivesh for Rail Budget 2015.

For Union Budget 2015, experts such as India Foundation head Shaurya Doval, Industry and Commerce former secretary Dr. Ajay Dua, former finance secretary C M Vasudev, former chief economic adviser Dr. Arvind Virmani, Sr. Journalist / Columnists Swapandas Gupta and Ashok Malik and former chief economic adviser Dr. Shankar Aachraya will be on-board.

February 26, 2015
On-board entertainment, SMS alerts, Wi-Fi on cards with tech friendly Rail Budget 2015

KOLKATA: In a 70-minute consumer-focused speech that carried the distinct imprint of Prime Minister Narendra Modi, Indian Railways Minister Suresh Prabhu on Thursday presented a slew of measures that introduced mobile friendly facilities for passengers.

While presenting his first maiden Budget, the minister in Lok Sabha proposed to offer on-board entertainment facilities in the railways on similar lines as provided by some aircrafts. Initially, this on-board entertainment facility would be extended on select Shatabdi trains on a license fee basis.

Additionally, SMS alert services to inform passengers of delay and departure timings for trains is also on the cards. “SMS alert to be introduced for train timings,” said the minister.

In order to give passengers more accessibility and connectivity at stations, the minister also proposed that Wi-Fi would to be made available at 400 railway stations. It should be noted that recently the Delhi railway station got Wi-Fi connected.

Not only this, the government also plans to develop a mobile application to address complaints of people.

Commenting on the mobile alerts, free Wi-Fi and technology friendly Budget, experts said that these applications would be particularly useful in locations where fog season means inevitable delays up to 24 hours and cancellations. “A prior SMS alert system will help ensure that travelers do not end up waiting at the station only to find out that their train has been cancelled. Now people will not mind to travelling by trains,” said an expert.

It should be noted that Prabhu did not talk about the application in details or how the app will help in dealing with passengers’ complaints.

The minister also announced that charging facilities for mobile phones would be extended in all trains and stations. “Mobile charging stations will be introduced in general class coaches,” he said.

Additionally, in order to make ticketing more passenger friendly the Budget also proposed “operation five minutes” for issuing unreserved tickets, hot buttons, coin vending machines, concessional e-tickets for differently-abled travelers, for booking tickets a multi-lingual e-portal will be developed. “Passenger travelling unreserved can procure a ticket within five minutes,” he said.

Prabhu also stated that the government aims to create a multilingual e-ticketing system, which will be encouraging for those might not be comfortable in English.

The Railways is further drawing up comprehensive policy to tap latent advertising potential.

Lastly, a good-Internet linked initiative that was announced was that food can be ordered from the IRCTC website at the time of booking. The minister said that, “E-catering has been introduced on some trains on experimental basis, depending on the response, it will be extended.”

Highlights

• The key themes of the Railway Budget were in line with Prime Minister Narendra Modi’s initiatives – Swachch Bharat Mission, Make in India and Digital India.

• SMS alert to be introduced for train timings

• Wi-Fi to be available at 400 railway stations

• On-board entertainment facility could be extended on Shatabdi trains

• Mobile charging stations will be introduced general class coaches

• Passenger travelling unreserved can procure a ticket within five minutes

• Mobile application to address complaints of people is also being developed

• Hand-held devices for ticket checkers for moving towards paperless ticketing

• Drawing up comprehensive policy to tap latent advertising potential

Railway Budget 2015, according to Prime Minister Narendra Modi, is a forward looking, futuristic and passenger centric budget, combining a clear vision and a definite plan to achieve it.

“This is a watershed moment for Railways, marking a paradigm shift from discussing coaches and trains to comprehensive railway reform. I am particularly delighted that for the first time, there is a concrete vision for technology upgradation and modernisation of the Railways. The Railway Budget lays out a clear roadmap to make the Railways the key driver of India`s economic growth, playing a key role in India`s progress. Railway Budget 2015 stands out for its focus on the common man, putting speed, scale, service and safety, all on one track,” the Prime Minister said.

Reacting to the maiden railway budget, Kotak Securities head-private client group research Dipen Shah said, “The first railway budget of Suresh Prabhu sets a vision for Indian railways, striving to make it the prime mover of the economy, once again.”

The prime focus of the minister is in enhancing its operations, targeting operating ratio at 88.5 per cent for FY16 from 91.8 per cent in FY15. “Budget carves out various resource mobilisation routes, moving away from budgetary supports. He has proposed to part-finance the ambitious five-year investment plan of Rs 8.56trn through funds from foreign institutions, pension funds, states, PSUs and PPPs both in form of equity and debt through SPVs. Focus is more on implementation and improving the service quality rather than on big bang announcements. Focus is also on commercial viability as much as it is on social welfare. We believe that, efficient execution of these initiatives will indeed improve the passenger revenues while also attracting more freight traffic to railways,” he added.

According to Shah, while change in freight fares seems cosmetic in nature, no change in passenger fare is welcome move, since fuel cost has come down significantly over the period.

The markets have likely been disappointed by the absence of several big announcements relating to the dedicated freight corridors or other capex programmes as well as finer details on FDI / PPP financing. “However, the focus on effective implementation, improving the operating ratio as well as on new initiatives bodes well for the railways in the long term. We expect the focus on deficit as well as reforms to be reflected in the Union Budget, and we will watch out for the same,” concluded Shah.

February 26, 2015