Date:27/10/2004 URL: http://www.thehindubusinessline.com/2004/10/27/stories/2004102702060500.htm

Back Star wants FDI cap in media hiked to 49 pc

Our Bureau

Kolkata , Oct. 26

THE Chief Executive Officer of Star India Pvt Ltd, Mr Peter Mukerjea, has presented a case for Star to hike its equity stake in its direct-to-home (DTH) venture that has been announced in association with the Tata Group.

Speaking to reporters on the sidelines of a news conference held here today to announce the launch of Star's Hindi entertainment channel Star One, Mr Mukerjea said Star has a 20 per cent equity stake in its DTH venture with the Tata Group having the balance 80 per cent.

"We feel that there is a need for equitable shareholding in such ventures. Ideally, foreign direct investment in the media should be hiked to 49 per cent," he said, and added that this would be in the interest of long-term financial planning and management. "However, till such time as government rules permit us to hike our stake, we shall go ahead with the 20:80 basis," he said.

Earlier, Mr Mukerjea said Star One would be on air from November 1. The channel is targeted at the urban, upwardly mobile Indian audiences. The channel will be launched with 21 "original" programmes across a range of entertainment genres.

The pay channel will cost viewers Rs 10 per home per month. Mr Mukherjea declined to divulge details of Star's financial commitment towards the channel or the payback period that the company was looking forward to.