(23 March 2007 12:50 am)

MUMBAI: The push for change is coming from all angles as the cable TV sector in India is caught in the wave of digitalisation. Rajan Raheja-promoted Hathway Cable & Datacom is in the process of roping in a new investor while Star Group continues to be an equity partner.

Mauritius-based venture capital fund Monet Ltd is coming in as the third partner with a 10.83 per cent stake in Hathway Cable & Datacom. Star Group had earlier acquired a 26 per stake in the cable company.

The foreign investment promotion board (FIPB) has given its approval to the proposal of "an increase in foreign equity by 10.83 per cent by Monet Ltd."

Hathway's relationship with Star, according to some industry watchers, had been strained for a long time. But in the last board meeting significant progress had been made on working out a growth chart for the cable company.

With conditional access system (Cas) kicking off in the three metros of Delhi, Mumbai and Kolkata, multi system operators (MSOs) have been under pressure to line up investments. Hathway Cable & Datacom MD & CEO K Jayaraman had earlier told Indiantelevision.com that it would be raising a debt of Rs 1 billion to fund its digital expansion plans in the initial phase.

Hathway Cable & Datacom's focus has been on having an integrated revenue model from digital and analogue operations, broadband and cable channels.