New Delhi : There’s bad news for the first-time broadcasters who have applied for TV licences. This is because up to 25% of the 400-plus new TV channel applications pending before the government may be rejected on invalid net worth criteria under the new TV licensing norms. The applications were based on earlier norms and at lower net worth requirements.
The move is likely to impact around 50 applicants who have sought permission to operate news channels as under the new licensing norm, the net worth requirements for a news channel licence has been raised to R20 crore (for the first channel) from the earlier R3 crore.
Similarly, the net worth criteria for uplinking of non-news channels has been revised from R1.5 crore to R5 crore for the first channel.
“All applicants will have to fulfil the requirements as per the new uplinking/downlinking guidelines. Even those whose applications are with the I&B ministry but have not been granted TV licence,” said a government official. While the exact number of applications pending before the I&B ministry is not known, sources said, at least 400 TV applications were under different stages of processing when the new TV licensing norms came into effect.
A number of broadcasters said they are going to seek legal recourse. “There is always a cut-off date with which a law/guidelines are enforced. Seeking legal recourse will be the only solution left if the hiked up net worth requirements are enforced on us,” said a senior executive of a media firm whose applications have been pending with the government since June.
Net worth means the excess of the book value of assets (other than fictitious assets) of an enterprise over its liabilities. It would be calculated as sum of the paid-up equity and free reserves minus accumulated losses, if any, in the company.
Currently, the government has given permission for around 800 television licences with another 400-plus in line making the television industry among the fastest-growing in the world. In early 2000, India had barely two-dozen permitted TV channels.
As per the new norms, all media companies granted TV channel licence will be required to operationalise their channels within 365 days from the date of permission for which the non-news channels will have to sign a performance bank guarantee (PBG) of Rs1 crore and news and current affairs channels will have to give a PBG for R2 crore. In the event of non-operationalisation of a permitted channel, the PBG will be forfeited and permission cancelled. Courtesy : The Financial Express
