Tag: Prakash Javadekar

  • CASBAA asks FM, I&B to roll back increased royalty on foreign satellite operators

    CASBAA asks FM, I&B to roll back increased royalty on foreign satellite operators

    NEW DELHI: The Cable and Satellite Broadcasters Association of Asia (CASBAA) has urged Finance Minister Arun Jaitley to withdraw the royalties imposed on foreign satellite operators (FSO) by the Finance Act 2012 and 2013 and let the matter be settled by the Supreme Court which is presently hearing a matter in this regard.

     

    The Delhi High Court had in January 2011 held in the case of Asia Satellite Telecommunications company Limited (AsiaSat) that the charges received by the Hong Kong based FSO from its customers for provision of transponder capacity cannot be characterised as ‘royalties’ under the Income Tax Act as it stood prior to the amendment in 20l2. It was held by the court that the equipment was used by the FSOs to provide a service to their customers and so the question of royalty taxation did not arise.

     

    The memorandum by CASBAA CEO Christopher Slaughter says that this view of the High Court was in conformity with the international jurisprudence and model commentaries issued by international tax bodies and renowned jurists / authors and was also followed in case of other FSOs by the High Court and Income Tax Appellate Tribunals.

     

    However, the memorandum sent to Jaitley with a copy to Information and Broadcasting (I&B) Minister Prakash Javadekar points out that the matter has become sub judice as Income Tax authorities have filed an appeal against this judgment in the Supreme Court.

     

    I&B Ministry sources told indiantelevision.com that CASBAA has also protested the rise in royalty under the Finance Act 2013 from 10 per cent to 25 per cent as it is not reasonable in view of the competitive margins earned by the industry players. The Association wants the Minister to roll back this increase so that the tax rates are made ‘friendlier’ and both the operators and consumers can benefit from a rational tax regime.

     

    It is stated that a majority of the Double Taxation Avoidance Agreements (DTAA) that India has entered into provide for a tax rate (on gross basis) on royalties and fees or technical services of 10 per cent.

     

    Thus, taking a holistic view from the point of alignment with the DTAAs and internationally accepted tax rates, the rate of 25 per cent is highly unjust and implies that FSOs are earning high revenues from India which is not the case.

     

    Furthermore, any such step to increase tax rates is not right as the matter is sub judice in the Supreme Court. It not only makes the services ‘cost ineffective’ but hits the ultimate Indian end consumers.

     

    Slaughter points out that India’s participation in the global network of satellite communication is growing and any such move by the Indian Government to tax FSOs may also drive policy-makers of other nations to adopt similar measures for taxing payments flowing into India from foreign jurisdictions. 

  • Prakash Javadekar takes oath as Rajya Sabha member from Madhya Pradesh

    Prakash Javadekar takes oath as Rajya Sabha member from Madhya Pradesh

    NEW DELHI: Prakash Javadekar, who has been made Minister of State with independent charge of the Information and Broadcasting Ministry, today took oath as a member of the Rajya Sabha from Madhya Pradesh. 

     

    Javadekar, who had filed only a single nomination form, was elected unopposed.

     

    The Minister’s term as a Rajya Sabha member came to an end on 2 April this year. He had been a member of the Upper House since 3 April 2008.

     

    The by-poll was necessitated as the sitting BJP member and former Union Minister Faggan Singh Kulaste got elected to the Lok Sabha from Mandla (ST) seat following which he resigned from his membership of the upper house. 

     

    Like his immediate predecessor Manish Tewari, he has also been the spokesperson of the party he represents. (He has also been given charge of Environment and Parliamentary Affairs.)

     

    Javedekar has also been one of the nominated members from Parliament to the Press Council of India and hence has dealt with media issues such as paid news.  

     

    A member of the Rajya Sabha from Maharashtra, Javadekar was born in Pune on 30 January 1951 and became associated with the Akhil Bharatiya Vidyarthi Parishad in his young days.

     

    He commenced his professional life as an employee in the Bank of Maharashtra for 10 years from 1971 to 1981 and also worked in the Rural Development Department. Sick Unit Cell, Employment Promotion Programme of the Bank.

     

    His father Keshav Krishna Javadekar was a senior leader of Hindu Maha Sabha who worked as joint editor of Marathi Daily started by Lokmanya Tilak – Kesari before having stints with some other newspapers like Tarun Bharat and Kaal as journalist. He still occasionally writes his thoughts in some newspapers.

     

    Javadekar has been president of GLOBE India (Global Legislators Organisation for Balanced Environment; In-Charge, BJP Economic Forum and Cells related to Economy; President, NOINO (National Organisation of Insurance Officers); and president, KCKU (Khadi Commission Karmachari Union).

     

    As a member of the Parliament, he has served as member of the Press Council of India; the Public Accounts Committee; Standing Committee on Human Resources and Development; Consultative Committee for Ministry of Power; Committee on Subordinate Legislation and Committee on Wakf.

     

    He has earlier served as executive president of the State Planning Board in Maharashtra (1995–1999); been a  Member of the Maharashtra Legislative Council from Pune Division Graduate Constituency for 12 years from 1990; chairman of the Task Force on IT in Maharashtra (1977–1999) and chairman of the Working Group on “IT for Masses” of the Central Government.

     

    He has also led a delegation to Boston to Negotiate Media Lab Asia Project in 2000.

     

  • Biometric systems to check attendance in I&B Ministry, quotations invited

    Biometric systems to check attendance in I&B Ministry, quotations invited

    NEW DELHI: A few days after Information and Broadcasting Minister Prakash Javadekar had forced around 100 officers of the Ministry to take leave for the day for coming late to office, the Ministry has decided to install biometric device for Attendance System.

     

    The Ministry has called for quotations for such systems (through finger print/face detection/ smart card) with in-built time and attendance software in the Ministry in Shastri Bhavan, New Delhi.

     

    The quotations have to be filed by the end of this month and will be opened the same day in the presence of those who bid.

     

    The bid has to be furnished in a two-bid system: technical bid and financial bid. Details of the contents of these bids have been furnished on the website mib.nic.in.

     

    The financial bid of only those firms will be considered which qualify for the technical bid. 

     

  • Apply once for security clearance, not for every new channel: MIB

    Apply once for security clearance, not for every new channel: MIB

    NEW DELHI: The issue of security clearance for directors of TV channels has cropped up once again, this time on a good note. In a notice, the Ministry of Information and Broadcasting (MIB) has said that applicants for new TV channels whose directors have already received security clearance will not have to apply for fresh security clearance from the Home Ministry (HM).

     

    However, this will apply to those applicants who have filed within the validity period of security clearance.

     

    In doing so, the MIB has restored a practice which was earlier in force but had been changed after the Home Minister, on 10 January this year, said that applications for new channels will require fresh security clearance though their tenure may be co-terminus with the 10 year licence period for the earlier channels owned by the same applicant.

     

    In its note today, the MIB said it had been ‘the experience of this Ministry that the entire process of grant of permission has slowed down considerably.’ The issue had also been raised in open house meetings and other meets, conducted earlier.

     

    Information and Broadcasting Minister Prakash Javadekar has also laid great emphasis on reviewing ‘such processes which cause avoidable delays and to streamline the same’.

     

    While the MIB had decided to restore the old practice to avoid delays, it has said that a copy of each cleared application would be sent to the HM for ‘its record and information’.

      

    The whole issue cropped up when the MIB had in June last year written a letter to the HM seeking clarification on the issue. In its reply in October last year, the HM had said that fresh security clearance would have to be sought and this would be valid for three years.   

     

    Later in December, the MIB had written to the HM that the new applications be made co-terminus with the 10 year licence that the original channel had received.

     

    The HM had in January this year agreed on the issue of being co-terminus, but said that fresh security clearance would have to be sought.

  • DD emulates Javadekar, conducts surprise check

    DD emulates Javadekar, conducts surprise check

    NEW DELHI: Just two days after a surprise check by Information and Broadcasting Minister Prakash Javadekar in Shastri Bhavan, a similar exercise has been undertaken to ensure punctuality in Doordarshan.

     

    It is learnt that Javadekar who generally spends the first half in the Environment Ministry office in Pariyavaran Bhavan found around 100 officers and other staff missing when he turned up in the Information and Broadcasting Ministry early in the morning.

     

    Taking a cue from this, four Deputy Director General level officers at Doordarshan have been asked to keep a check on the punctuality of officers.

     

    Consequently, a surprise check was conducted in Doordarshan Bhawan on Thursday from 9:30 am onwards to find out the defaulters/late comers.

     

    Doordarshan has already issued a circular to its employees to ensure punctuality.

     

    During the surprise check, a very few late comers were found, and DD sources say that the employees appeared to have taken the cue from the surprise check done by Javadekar.

     

    However Doordarshan is initiating action against all those who will be reported late, with more such surprise checks may be done in the future.

  • Budget 2014 is an opportunity for M&E to grow: Sudhanshu Vats

    Budget 2014 is an opportunity for M&E to grow: Sudhanshu Vats

    The new government’s overall inclination towards development brings with it great optimism about the new Budget (2014) for me – not just as the head of an organisation but also as a representative of the Media and Entertainment industry. In fact, the Media & Entertainment industry experienced a whiff of fresh air with the new I&B Minister’s thoughts at the recent CII CEO roundtable. Eminent colleagues from across the industry raised key issues, which Shri Javadekar patiently heard and responded to – a sign of the new government’s strong preference for accountability and focus on governance.

     

    The industry is poised for exponential growth during the term of this new government – almost doubling every year. It has the potential to provide almost six million direct jobs and also add to the economy as an aid to tourism.

     

    After the extensive discussions and dialogue with colleagues and members of this bustling industry, I’ve penned some suggestions that can fuel the industry to reach never-before levels of growth.

     

    Accountability

     

    Accountability is the one thing that lacks processes in the Media & Entertainment space. A single-window clearance mechanism for permissions, especially for films and events, will motivate the industry to concentrate more on revenue streams rather than go around in circles. The wish list would remain only partially addressed without queries and licenses becoming more time-bound.

     

    And while we expect an evolution in policies, keeping them clear and consistent with foresight at the back of the mind constantly, future action can be planned at the organisational level with greater certainty and generate opportunities for employment in large numbers, thus contributing significantly to the economy.

     

    Pragmatic Policies

     

    The media and entertainment industry is currently valued at USD 20 plus billion with significant growth potential. We’re poised to catapult to the next level with a few pragmatic policy reforms. Additionally, the M&E industry has the capacity to generate almost six million jobs directly and also further boost sectors like tourism.

     

    More Spending Power

     

    Rationalising Income Tax slabs is a key step towards taking the burden off the consumer’s shoulders. He will have more money to spend on his favourite means of recreation – entertainment.

     

    Tax Abatement

     

    And while we are on the topic of the Media & Entertainment industry and its role in the economy, one of the biggest losses I believe that it incurs is almost the one-third of revenue that it gives away in taxes and multiple licence fees over and above recurring commissions. These need to be re-evaluated and rationalised. In anticipation of GST implementation, entertainment and service taxes can be lowered to a more reasonable level.

     

    Considering the premise of development that the new government has adopted, we expect a growth oriented budget, laying down a clear and consistent long-term roadmap. These steps that I have attempted to chalk out, will only allow the entire industry to collectively entertain India even more, even better!

     

    (These are purely personal views of CII National Committee on Media & Entertainment chairman & Viacom18 Media group CEO Sudhanshu Vats and indiantelevision.com does not subscribe to these views.)

  • Tony D’silva draws up wishlist for MIB

    Tony D’silva draws up wishlist for MIB

    MUMBAI: The Information and Broadcasting Minister (I&B) Prakash Javadekar wants a happy Media and Entertainment industry. And for the same, he has been meeting the members of the industry personally to understand their concerns and devise a way forward.

     

    The cable TV industry, which is currently undergoing digitisation, is looking up to the Minister for a better tomorrow. While digitisation of the 120 million cable TV homes in phase III and phase IV took a backseat with the general elections, so did the launch of the Headend in the Sky (HITS) by Grant Investrade, a 100 per cent subsidiary of Hinduja Ventures.

     

    Now with the Ministry throwing some clarity on the next two phases of digitisation, Hinduja group on Monday paid the Rs 10 crore licence fee to the Ministry to move things forward. But, this isn’t all, with this, the expectations from the Ministry has also risen.

     

    In a conversation with indiantelevision.com, IMCL MD & group CEO Tony D’silva lists down his wishlist from the new government and especially the I&B Minister.

     

    • The I&B must demonstrate its commitment to digitisation by immediately announcing the future dates of the remaining two phases.

     

    • According to me, unlike phase I and phase II of digitisation, the government should consider digitising not phases, but complete states. This will also avoid the confusion of neighbouring markets like Hyderabad / Secunderabad, Mumbai and suburbs, Delhi and surrounding markets as well as prevent piracy of signals.

     

    The advantage of doing state-wise digitisation is that if the whole state is involved, the state government can easily estimate its revenues and join forces to ensure implementation. (Similar method was followed in some other countries).

     

    • Broadcaster pricing needs to be worked out more meaningfully in states that are not yet digitised. From my understanding for most broadcasters, phase I and II contribute at least 75 per cent or more of their existing revenues that is from approximately 30 million homes. This means that the rest 25 per cent or so of their business comes from the 100 million- 120 million homes that fall in the next two phases. So when you look at the ratios, then what really should be the pricing of the broadcasters? Broadcaster pricing is the key to the success of digitisation in phase III and IV.

     

    • The broadcaster pricing has to be different. It has to be territory wise and therefore, digitising a complete state is more feasible. The MSOs, broadcasters and the TRAI can sit and discuss in an environment which is more transparent and also come up with pricing which is more viable for phase III and IV.

     

    •  The Hinduja group is committed to invest over $100 million, to set up its HITS business, which is a white label backend service provider to support the smaller operators and help them retain their business and livelihood (the industry employs a few million people), hence it’s important to support the LMO. The group has already invested a couple of crores on the project, but needs a confirmed date for digitisation, before its expense meter starts ticking (transponder payments etc).

     

    • While we do support the government’s effort to encourage indigenisation of set top boxes (STBs), the government should also ensure that it is offered at comparative or better terms than international suppliers (price, credit facilities, repairs, servicing etc). A roadmap for future high end STBs should also be provided.

     

    • One of the key players in the value chain is the LMO. Enough by way of regulation and processes has not been done for them as yet. This needs a complete relook in light of the present situation in phase I and II markets.

     

    • I believe that one of the key objectives of digitisation is consumer choice. Government must insist on the prepaid model along with packaging of channels from day one of digitisation in phase III and IV markets, or else we will face the same problems like the ones in phases I and II.

     

    • The LMO has been the backbone of the C&S industry. In view of this, the government must find a way to encourage them to grow their business. The current licencing policy is completely against the interest of a small LMO. I fail to understand why an operator who has existed for years in the market is asked to get a fresh licence from the centre?  I can’t understand if he is a pan India operator, who already has a licence and has a registered business and is even paying his taxes, then why should digitisation change his status?

     

    If he does not comply with the guidelines, action can be taken by the regulator or the market forces will anyway drive him out of business as there are alternatives to consumers like DTH etc. This needs some immediate intervention.

     

    • The industry is heavily burdened with huge investments due to digitisation. Investments have been made in headends, backend services and STBs, among other things. I earnestly request that the C&S business be given an industry status. Also a relief from double tax: service tax and entertainment tax is needed. Reduction in import duties is also a necessity as it directly affects the customer. Also the entertainment tax needs to come down. It should be a percentage of the package the customer chooses, rather than have one set rule for all the households.

     

    • Another issue is of TRAI’s current regulation on de-aggregation. While the regulation was supposed to help the MSOs, it has had an adverse effect. So, I would like to appeal to the broadcasters and the authorities to intervene and bring about the reasonable pricing model that facilitates business. The broadcasters need to take a long term view of how they can monetise the content, because the old theory of everyone wanting to be on the basic pack cannot work anymore.
  • I&B Ministry-bashing unwarranted, says NDTV’s Narayan Rao

    I&B Ministry-bashing unwarranted, says NDTV’s Narayan Rao

    MUMBAI:  For the past one and a half years, India has been undergoing stomach churning change in the television industry thanks to the government mandated rollout of digitisation. With the due date to complete digitisation nationwide getting closer (31 December), much needs to be done. Now, with a new government in place and new Information and Broadcasting (I&B) Minister Prakash Javadekar assuring the industry that digitisation will be implemented, expectations are only rising.

     

    The recent CII meeting that took place with Javadekar saw industry stalwarts express their woes and wish-lists to the minister. They also expressed their displeasure at the inefficiency of the I&B bureaucracy.

     

    I&B joint secretary of broadcasting Supriya Sahu and I&B secretary Bimal Julka were targets of accusations of delays in clearances and permissions.

     

    Some other industry leaders – while appreciating the fact that the I&B Ministry  pushed through DAS, whereas CAS in 2006-2007 just fell through –  have lambasted even the TRAI – along with the I&B Ministry – at industry  gatherings over the past six months for not moving fast and determinedly enough on many issues that have impacted their businesses.

     

     NDTV vice chairperson and News Broadcasters Association president KVL Narayan Rao thinks that industry needs to keep a cool head and not resort to bureaucracy bashing. Narayan Rao has nearly 30 years work experience; half of that was spent in the bureaucracy with the Indian Revenue Service (1979-1994); the other half has been with the news network NDTV.

     

    Says he: “I think the attack on the bureaucracy, particularly that on the I&B Ministry, was quite unfair. We currently have some highly efficient officials at the I&B Ministry who have shown a lot of understanding of our issues and have tried to do all they can to solve them. Supriya Sahu and Bimal Julka come immediately to mind.”

     

    At the CASBAA India 2014 conference in New Delhi earlier this year, Sahu made a detailed presentation on the progress and benefits of digitisation stating that only 10 broadcasters had shared data with the Ministry. She appealed to other broadcasters to share revenue data with them so that the government could ascertain whether the digitisation dividend was really coming the way of industry.

     

    If one harks back to 2012 almost everyone was cynical that the government mandated digital addressable system (DAS) rollout would ever become a reality. Almost everyone scoffed at even the suggestion. But it was a determined ministerial secretariat led by the then secretary Uday Kumar Varma and his team which consisted of Supriya Sahu and her directors Reijemon who pushed it through – along with the TRAI. Julka who replaced Varma has been following the same narrow strait.

     

    Hence Rao feels that constant hurling of barbs at ministry officials is unpalatable. Says he:  “Please remember that this is virtually the same lot of officials who ensured the implementation of the first two phases of digitisation which isn’t an easy task at all, who also issued the notification on ratings agencies, a long pending demand of the industry, and issued over 400 permissions for channels and who have allowed self/independent regulation to prevail. Yes there have been delays now and then but how much of that can be attributed to the bureaucrats is debatable.”

     

    Indeed, several initiatives were taken by the I&B mandarins. Officials regularly met (at one time it was almost weekly) with industry executives – whether from broadcasting, MSOs, or LCOs – to asses digitisation’s progress. The security clearance check that directors of various channels were subject to – which pained many a broadcaster – came at the behest of the Ministry of Home Affairs.

     

    When a large grouping from the broadcasting industry  rose against the only TV ratings agency TAM, it was the I&B Ministry that took note of it and came up with policy guidelines for TV viewership monitoring. It was the Ministry which also pushed the institution of Broadcasting Audience Research Council, which the industry had kept in cold storage for almost half a decade.

     

    After the Saradha chit fund scam, the Ministry quickly stepped in and did a check of the shareholding pattern of various channels to prevent repeats of a similar nature.

     

    When TRAI came out with the 10+2 ad cap regulation, the Ministry supported the broadcasters’ view in keeping it at bay till digitisation pans out, though nothing concrete has come out of it as yet.

     

    Additionally, while the Ministry did use the stick, it also doled out carrots by extending DAS deadlines on more than a few occasions – keeping in mind the realities on the ground – to give it a reasonable chance at success. Despite the long rope extended by both TRAI and the I&B Ministry, industry at the cable TV and MSO level has yet to begun physical billing for DAS subscribers even in some phase I cities. Forget about phase II.

     

    Says a media observer: “Agreed for the last three or four months of the UPA regime the Ministry’s focus was on the election; industry issues were not a high priority. It was not a fault of the civil servants alone; the Ministry itself and the government on the whole could not move, thanks to the losses in the New Delhi state elections, and the stigma of corruption which kept hitting the Congress I in its face. I can understand some sections of the industry getting edgy, nervous and agitated for many a broadcaster’s, DTH operator’s business plans are linked to digitisation’s success and the fact that bureaucrats and ministries don’t throw a spanner in the works.”

     

    She adds: “But we have to remember we have a new government led by Narendra Kumar Modi who has a lot more freedom than the previous regime. There’s a lot of positivity around, even though there are economic challenges on hand. The industry should look ahead, and not back. Things can only get better, and with experienced officials in the Ministry at helm, it will be easier to push through things. New ones could end up taking longer as they will have to come to grips with the sector – and that takes time.”

     

    That’s a piece of advice which the irate members of the industry can ponder upon.

  • Government keen to resolve issues facing M&E industry

    Government keen to resolve issues facing M&E industry

    NEW DELHI: While exuding confidence in the Media and Entertainment industry in the country, Information and Broadcasting Minister Prakash Javadekar today said it was important for the stakeholders to keep the welfare of the citizens in mind.

     

    He said he knew the sector had immense opportunities and the world “is fascinated by our culture and Indian cinema is becoming very popular.”

     
    “Education and entertainment are the primary needs after roti, kapda and makaan (food, cloth and shelter),” Javadekar added.

     

    The Minister said that his attempt in keeping with the mandate of the new government would be to take decisions on pending issues as soon as possible as “delay is out, decision is in.”  The work of the government is not to create roadblocks but to give impetus to entrepreneurship and industry. 

    Addressing the ASSOCHAM meet on media and entertainment, SCREENS 2014, the Minister, said the path-breaking initiatives on digitisation were bound to improve the quality of television broadcasting in the country. Both the government and the industry should work together for the welfare of the consumers. “There are issues of distribution, there are issues of taxation,” he added.

    “We, both the industry and the government, have to think about the final consumer. Government and industry have to think about the welfare of common citizen and to that end we are partners, we are the facilitators,” he said. 

     

    Later, Additional Secretary (Films) Raghvendra Singh said that the government was in the process of revamping the Cinematograph Act 1952 which had been drafted when there was no television or other media,

     

    Realising that media and entertainment was the biggest market in terms of consumer needs; the government is also on the threshold of announcing a major initiative for curbing piracy.

     

    He was conscious that entertainment tax being a state subject was not uniform, and that there was a grievance about service tax. He hoped all these issues would be subsumed in the proposed Goods and Sales Tax, which the government hopes to bring forward soon.

     

    He said that the government was very keen to upgrade the Film and Television Institute of India and the Satyajit Ray Film and Television Institute, also to set up a centre of excellence for animation and special effects as soon as possible.

     

    He also informed that the government was finalising its work on the National Film Heritage Mission for assessment of preservation and restoration of film material.

     

    “Funds have already been provided in the Ministry’s allocations for anti-piracy measures but this was not possible without collaboration from the industry itself,” said Singh.

     

    Telecom Regulatory Authority of India member Vijayalakshmy K Gupta stressed that addressability has led to better television and online video viewership has grown 13 per cent between December 2012 and December 2013.

     

    It has also led to reduction of carriage fee, she claimed on the basis of the first two phases of digital access system.

     

    She said that TRAI was firm on its decision not to permit state or central government units in private radio or television broadcasting.

     

    She felt that as far as cinema was concerned, there was need for a Film Commission for dealing with various issues.

     

    TRAI advisor N Parameshwaran said, “One major problem is that all multi-system operators are ‘pulling in different directions’ and therefore it is difficult to resolve their problems.”  

     

    He agreed that there was need for rationalisation of taxes in the country as far as media and entertainment were concerned.

     

    He said TRAI was already working on the issue of increasing bandwidth in view of 4G technologies coming in after HD.

     

    He denied charges by cable operators that broadcasters or MSOs were being protected as he said they had also been prosecuted for violating rules.

  • Javadekar clears air about 100 % FDI in news

    Javadekar clears air about 100 % FDI in news

    MUMBAI: Information and broadcasting minister Prakash Javadekar, in an exclusive interview to NewsX, cleared the air about the Centre mulling over to allow 100 per cent Foreign Direct Investment (FDI) in news media.

     

    Talking to NewsX’s Senior Executive Editor Priya Sahgal, Javadekar said, “I never said ok to 100 percent FDI. We haven’t said it. Never.”

     

    The minister asserted that “it’s the industry which has to take the call.”

     

     “People are discussing, let them discuss. Will talk with all stakeholders,” he added.

     

    Currently, foreign investment is allowed only up to 26 per cent in news and current affairs media.