Uplinking & downlinking of channels: Min net worth requirement eased for broadcasters
The move comes after broadcasters complained to the ministry that they were facing difficulties in meeting the minimum net worth requirement
The Ministry of Information and Broadcasting has relaxed the minimum net worth requirement for broadcasters seeking permissions for the uplinking and downlinking of TV channels.
The move comes after broadcasters complained to the ministry that they were facing difficulties in meeting the minimum net worth requirement as per the revised guidelines for Uplinking and Downlinking Satellite Television Guidelines in India.
“It has now been decided that the entities, which are existing permission holders under the Policy Guidelines should show demonstrable and verifiable efforts to meet the required net worth as per the Policy Guidelines of 2022.
“The difference between the net worth required as per the guidelines of 2022 and the net worth required as per the guidelines applicable on 08.11.2022 shall be computed. The net worth must be increased to meet 25% and 75% of the aforesaid difference by December 31, 2023 and September 30, 2024 respectively,” the ministry said in its notification.
However, it clarified that in any case, all existing permission holders must achieve the minimum net worth requirement as per the guidelines of 2022 by December 31, 2024.
According to the guidelines issued on November 9, 2022, broadcasting entities were supposed to have a net worth before seeking permission for various services (refer to the table).
As per the ministry, pending applications received before November 9, 2022, such as permission for a new channel, renewal of permission of a channel, change in name and logo of a channel, change in substantial shareholding (change of 10% or more) etc. from existing permission holders and new applicants; shall be processed only on the achievement of the target of 25%, subject to the condition that there is no change in the beneficial ownership of the entity.
“If the material available on record indicates that there is a change in the beneficial ownership of the entity, no relaxation shall be provided. Once permitted, the permission holders shall also meet the requisite net worth criteria and timelines as mentioned…… Entities who are not existing permission holders and which apply for the first time after the issuance of the new guidelines i.e. on or after 09.11.2022, must comply with the prescribed net worth requirement prescribed as per the Policy Guidelines without any relaxation,” the ministry said.
The MIB also noted that as per the Policy Guidelines of 2011, relaxation was provided to the existing permission holders, allowing them to be governed by the terms and conditions of the Policy Guidelines, 2005 regarding the minimum net worth requirement.
“However, no such relaxation has been provided in the current guidelines, causing hardship to many entities having net worth much below the required net worth as mentioned in the new Policy Guidelines of 2022,” it said while providing relaxations.
