Tag: MCCIPL

  • Star News gets week’s uplink extension

    Star News gets week’s uplink extension

    NEW DELHI: The Indian government today gave permission to Media Content & Communication India Pvt Ltd, in which Star holds 26 per cent equity stake, to continue uplinking news content for Star News on a temporary basis for another week starting 26 June.
     

    Even as this breather came through, Star India now seems to be more amiable to bring down the prices of Star channels from the existing Rs 50 to make them more affordable to consumers in a post conditional access regime.

    Pointing out that Media Content & Communications India Pvt Ltd (where 74 per cent shareholding is with Indians as per the new uplinking policy for news channels) has been given a week’s temporary okay for uplinking, additional secretary (broadcasting) in the information and broadcasting ministry Vijay Singh said, “We do give temporary uplinking permission on a case by case basis. They came with a fresh application for temporary uplinking and it was granted to them.”

    Speaking to journalists after a meeting today, lasting over an hour, with Star India CEO Peter Mukerjea, Singh said that the government expects to complete the formalities regarding an application of MCCIPL filed last week soon.

    “We are awaiting feedback from the home ministry and department of space after which the I&B ministry will take a stand on the application (of MCCIPL to uplink from India news content for Star News),” Singh explained, adding that today’s meeting had been sought by Star India.

    Asked specifically by indiantelevision.com whether the government can complete all the formalities within a week’s time and whether further extensions needed to be given, Singh said, “I don’t see any reasons why it cannot be done.”

    Incidentally, the same ministry last week was grumbling that MCCIPL’s application had come too late and too near the 90-day deadline given to the likes of Star News taking all permissions within the 90-day period. Hinting in a way that Star News would have to go off air from 26 June or cannot beam live events from India.

    Though Singh did not get into the specifics whether a paid up capital of Rs 100,000 was too low or not, he did admit that the details and clarifications sought from MCCIPL have been furnished.

    Asked about a court case that has been filed in the Gwalior high court against a conditional letter given to Space TV, a Star affiliate, for KU-band DTH television service wherein the court has severely criticized the government stand, Singh said, “We did discuss the DTH case, but I cannot discuss the details.”

    At the end of the meeting, a smiling Mukerjea joked with indiantelevision.com that Star News may go off the air from midnight or tomorrow. On the serious side, he said, “The government has been very appreciative of our stand.”

  • Supplementary application on Star News to be filed Tuesday

    Supplementary application on Star News to be filed Tuesday

    NEW DELHI: Even as the government today said it is examining a proposal involving Star News submitted last Friday, the company that would be the content provider for Star News channel, pending various okays, is called Media Content & Communication India Pvt Ltd (MCCIPL).
     

    An information and broadcasting ministry official today said that the proposal for Star News is being examined by the relevant departments before a decision can be taken on it and insisted the application had arrived “late”. The 90-day grace period given to the likes of Star News and CNBC India to restructure as per the current uplinking policy expires on 26 June.

    Though it is not clear whether the government has already shot off a missive seeking clarifications, the official did admit that the application needs some more financial clarity. In a related development, indiantelevision.com learns that MCCIPL is likely to file a supplementary application tomorrow that would enlist details about the shareholders of the company.

    This move has got necessitated as the Indian government came out with a new uplinking policy late March that foreign holding in all news channel desirous of uplinking from India would be capped at 26 per cent. Since Star News, owned by Rupert Murdoch, was an on-air channel like CNBC India in which foreign shareholding was there, a transitory arrangement was also announced by the government. Under this arrangement content providers/channels who are currently using VSAT/roof top transmission system/satellite video phone and similar infrastructure, which lends itself for use for uplinking/point-to-point transfer of content for broadcast purpose, will be allowed a maximum period of three months to come within framework of these guidelines.

    A point of dispute that has arisen now involves the 90-day period and whether it implies permissions have to be obtained within the deadline or just sought. If the government is to be believed, the rule means that permission formalities have to be completed within 90 days, while the company feels that it means seeking permission within the stipulated period.

    “It is up to the government now to take a stand as we have filed for permission within the deadline (expiring three days from now on 26 June),” a source close to the new company told indiantelevision.com today.

    Meanwhile, the authorised capital of MCCIPL is Rs 50 million, while the paid up capital of the company is said to be Rs 100,000. A sum of Rs 40 million has already been termed as ‘committed’.

    While Kumarmangalam Birla in his personal capacity holds 25 per cent stake in MCCIPL, a similar shareholding is with Hemendra Kothari of DSP Merrill Lynch, which had been mandated by Star to structure an entity as per rules and regulations. Apart from Star, which has 26 per cent equity stake in the company, the other shareholders include Hindustan Times editor Vir Sanghvi (5 per cent), ad man Suhel Seth (5 per cent), Balaji Telefilms head Jeetendra (5 per cent), former head of Britannia Sunil Alagh’s wife, Maya (5 per cent) and Star Group legal advisor Rian Karanjiwala (4 per cent).

    It is also learnt that all those who work for Star News channels, including its president Ravina Raj Kohli, news director Sanjay Pugalia and other editorial staff will be formally transferred to MCCIPL as and when it gets the green signals. The board of directors for the company includes Kaushal Dalal (in charge of business development for Star India), Kohli, Pugalia, Seth, Shanti Ram (said to be representing Kothari) and Gopi Kumar Tulsian (Birla’s representative).