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The Indian CAB&SAT Reporter
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Volume no: 1. Issue no: 3

12 October 1998


SWARAJ AND AFTER

Outgoing information & broadcasting (I&B) and communications minister Sushma Swaraj has left her imprint on the television business in the six months that she headed the I&B ministry. During her tenure:

*She reverted the Prasar Bharati Act to its 1990 status. This act helped her lower the age bar for the chief executive of the holding company, Prasar Bharati, for state-owned TV broadcaster DD and radio-caster All India Radio, and had him reporting to a committee made up of politicians.

*She had a much publicized fracas with the former chief executive of Prasar Bharati S.S. Gill which finally resulted in him getting sacked as he was over the age stipulated by the Prasar Bharati Act she got passed in Parliament.

*Aware that political consensus on a Broadcasting Act would not be easy, Swaraj de-linked live uplinking from Indian shores, regulation relating to cable TV and direct to home television from it. To her credit, she passed legislation allowing Indian broadcasters to uplink live from Indian shores using the overseas communications carrier VSNL.

*She cracked the whip on liquor and tobacco firms and forced them to draw up a code for advertising on television.

*She allowed the entry of cable operators into Internet services.

*She placed a cap of 20% on foreign investment in television companies.

At the time of her departure she had taken steps to draw up a Broadcasting Act and also new legislation relating to the cable TV business and direct to home television. Swaraj had a minister of state M.A. Naqvi who had often complained that he didn't have much work coming his way. But nevertheless he had been quite vocal in announcing a ban on Pakistan Television, ensuring better carriage of DD channels on cable TV networks, and he also succeeded in making MTV drop its Indian flag logo.

Television industry executives who had just about begun to get comfortable with the relative stability during her minister-ship were left guessing about what direction the BJP would take. Questions uppermost on their mind were:

*Would the BJP government appoint a new minister of equal status to Swaraj to look after the I&B ministry?

*Would it continue along the same policy lines that she had followed while drawing up regulations or policies and at the same speed?

*Would the Broadcasting Act be consigned to a shelf to gather dust like it has been by previous governments? Ditto with cable TV regulation.

*Would foreign broadcasters be left to making decisions in an uncertain regulatory environment?

*Would additional responsibility be thrust on Naqvi now - considering that he is only a junior minister with not as many powers as the minister -- and would he be as effective?

*Would Naqvi be more liberal with Star TV now if the ministry's functioning were left to him? And would the government be more open to an alliance between Zee TV and Star TV, which would create a television powerhouse?

Naqvi had met with Star TV Asia chief Gary Davey in Hong Kong last fortnight. Davey had explained to him that Star TV was an Indian company and should be treated as such. And, according to reports, Naqvi had been receptive to him. He had also been quoted in a local daily saying that that the cap that had been put on foreign investment in broadcasting companies would be lifted.

At the time of writing, the government had made no announcements relating to Swaraj's replacement. But going by the ruling BJP party's track record so far, liberalization in the broadcasting sector is likely to continue; though the pace may initially slow down. In fact, liberalization is likely to accelerate finally. Foreign investors need have no fears.




 
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  Television scrips soar

  DD bags several tournament rights

 

Analysis

 
Swaraj and after ...

 
 
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