(a) whether the Government has developed any mechanism to regularly check the net-worth of the companies who are holders of private radio of TV channel licenses and if so, the details thereof and if not, the reasons therefor;
(b) whether the Ministry has taken any action against those License Holders whose net-worth are below the prescribed limit; and
(c) if so, the details thereof?
THE MINISTER OF STATE FOR THE MINISTRY OF INFORMATION AND BRAODCASTING [COL RAJYAVARDHAN RATHORE (RETD.)]
(a) to (c): In so far as Private radio is concerned, as per clause 24 of the Grant of Permission Agreement (GOPA) for FM Radio (Phase-III) signed with this Ministry, the company holding FM Radio permission is required to maintain its eligibility criteria at all times during the period of permission. As per clause 2.3.1 of the Policy Guidelines for Private FM Radio (Phase-III) the financial eligibility of each applicant company is assessed on the basis of Minimum Net Worth required as per City Category in each Region prior to grant of FM Radio permission. No case of lesser than required networth has come to the notice of the Ministry.
In so far as private satellite TV channels are concerned, as per provisions contained in Uplinking & Downlinking Guidelines, networth is a necessary criteria for any company to fulfil before permission is granted by MIB for operation of TV Channel. The minimum amount of networth is specified in the Uplinking Guidelines under Clause 1.1.2 for teleports, Clause 2.1.2 for Non-News & Current Affairs TV channels, Clause 3.1.13 for News & Current Affairs TV channels and in Downlinking Guidelines under Clause 1.5 for TV Channels Uplinked from abroad. Moreover, under Clause 5.8 of Uplinking Guidelines the company is required to maintain compliance to the eligibility criteria at all times during the period of permission. Government checks the networth of company, whenever the company applies for an additional TV channel/ Teleport.
If at any point of time, networth is found below the prescribed limit, the company is issued a Show Cause Notice & further action as deemed necessary is taken as per their response to the notice, after following due process of law and giving adequate opportunity for representation as per principles of natural justice.
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