The Hindu : Govt. likely to rework satellite uplinking policy

Online edition of India's National Newspaper
Thursday, Aug 21, 2003

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Govt. likely to rework satellite uplinking policy

By Our Special Correspondent

NEW DELHI AUG. 20. Unhappy with the manner in which Star News "circumvented'' the law in both letter and spirit, the Government is likely to rework the satellite uplinking policy to plug the loopholes. Also, there are indications that the satellite uplinking policy would be brought on a par with the guidelines for foreign investment/participation in the print media.

The rationale for reworking the guidelines has been provided by the Inter-Ministerial Group (IMG) in its report submitted to the Minister of State for Information & Broadcasting, Ravi Shankar Prasad, on Tuesday. The group found that Star News had prima facie flouted the guidelines. "There is almost conclusive circumvention of the guidelines through a series of interesting financial relationships with backend companies,'' Ministry sources said.

Though a final decision will be taken by the Group of Ministers (GoM) — set up to "revisit'' the four-and-a-half-month-old policy — in consultation with the Prime Minister and the Deputy Prime Minister, the Government appears inclined to tighten the existing provisions.

This became evident after the GoM — the Finance Minister, Jaswant Singh, the Law Minister, Arun Jaitley, and Mr. Prasad — met for the first time today to discuss the uplinking policy.

Talking to reporters after the meeting, Mr. Prasad said all options were being considered and a decision would be taken "shortly''.

The Government sources said the view was that the Media Content & Communications Services (MCCS) — the company floated by Star News to "fit'' the guidelines — is a "front company having no editorial control, no power to make appointments, and no power to raise equity/finances.'' Further, the GoM took note of the fact that the "entire operational control in MCCS is vested in Star''.

Though the guidelines could well be reviewed — necessitating a fresh application from Star News to uplink — the Government will allow the Rupert Murdoch entity time to comply with the new modalities should such an eventuality arise. "Our purpose is not to shut anyone out, but to ensure that the laws of the land are complied with.''

Should the guidelines be revised, then other companies having foreign investment/participation may also have to restructure themselves; particularly if the Government decides to ensure that 51 per cent equity in such companies is consolidated in an Indian hand, as is the case for print media having foreign investment/participation.

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