(26 February 2010 9:30 pm)

NEW DELHI: In a move that would encourage digitisation, the government today announced provision of project import status at the concessional customs duty of 5 per cent on investment in digital head-end equipment.

Finance Minister Pranab Mukherjee in his Budget for 2010-11 also announced that there will be full exemption from special additional duty to the initial setting up of such projects.

Mukherjee said cable transmission of entertainment was undergoing a transformation with the adoption of digital technology and multi-service operators (MSOs) want to invest in digital head-end equipments in keeping with the times.

The conferment of project import status will also spare importers of such digital head-end equipment from various procedural and valuation rigour. Clearances will be faster and relatively hassle free.

The concession on customs duty should help faster digitalisation of the cable TV sector.