Financial Restructuring of Prasar Bharati (Broadcasting Corporation of
India) based on the Recommendations of the Group of Ministers on Prasar
Bharati
The Union Cabinet today approved the proposal of the Ministry of
Information and Broadcasting for financial restructuring of Prasar Bharati
(Broadcasting Corporation of India). The proposal is based on the
recommendations of the Group of Ministers (GoM) on Prasar Bharati (PB),
constituted under the chairmanship of the Home Minister, to examine various
issues pertaining to the functioning of Prasar Bharati.
On the basis of the recommendations of GoM, the Cabinet has given its
approval for the following in order to improve the overall financial
management of Prasar Bharati (PB):-
i. During the next five years from 2012-13 to 2016-17, Government non- Plan
support will be made available to PB for meeting 100 per cent expenses
towards salary and salary related expenses. All other operating expenses to
be borne by PB out of internal revenue earnings.
ii. Plan capital support by the Government to PB will be in the form of
grants-in-aid only and not in the form of loan.
iii. Accumulated interest on loan-in-perpetuity, interest on capital loan
and penal interest thereon payable by PB to Government will be waived off.
iv. Loan-in-perpetuity and capital loans provided to PB will be converted
into grants-in-aid.
v. Accumulated arrears of space segment and spectrum charges accrued to PB
upto 31.3.2011 of Rs. 1349.54 crore, to be waived off.
vi. Property and Assets will be transferred on book value to PB as per
provisions of Section 16(a) of the Prasar Bharati Act, 1990. Normal
accounting principles will be followed to determine their future value; and
vii. Director General of Audit, Central Revenues (DGACR) will continue to
be the nodal auditor of PB and will be assisted by qualified commercial
audit staff for the audit of the annual accounts.
Background:
The Prasar Bharati (PB), the Public Broadcaster in the country, has been
grappling with various financial and human resource/employee issues since
its inception, which have adversely affected its functioning as an
autonomous organization. In view of the problems being faced by PB, a GoM
was constituted under the Chairmanship of the Hon'ble Home Minister on 7th
March, 2006 to examine the issues of PB. The GoM was again reconstituted on
21.2.2011 which considered PB's future revenue earning potential given its
public service broadcasting mandate, and made a number of recommendations
for making PB a financially viable and sustainable organization.
***
SC/SKS
Press Information Bureau
Government of India
Ministry of Information & Broadcasting
14-September-2012 19:30 IST
[Via dx_india]
Bharati
The Union Cabinet today approved the proposal of the Ministry of
Information and Broadcasting for financial restructuring of Prasar Bharati
(Broadcasting Corporation of India). The proposal is based on the
recommendations of the Group of Ministers (GoM) on Prasar Bharati (PB),
constituted under the chairmanship of the Home Minister, to examine various
issues pertaining to the functioning of Prasar Bharati.
On the basis of the recommendations of GoM, the Cabinet has given its
approval for the following in order to improve the overall financial
management of Prasar Bharati (PB):-
i. During the next five years from 2012-13 to 2016-17, Government non- Plan
support will be made available to PB for meeting 100 per cent expenses
towards salary and salary related expenses. All other operating expenses to
be borne by PB out of internal revenue earnings.
ii. Plan capital support by the Government to PB will be in the form of
grants-in-aid only and not in the form of loan.
iii. Accumulated interest on loan-in-perpetuity, interest on capital loan
and penal interest thereon payable by PB to Government will be waived off.
iv. Loan-in-perpetuity and capital loans provided to PB will be converted
into grants-in-aid.
v. Accumulated arrears of space segment and spectrum charges accrued to PB
upto 31.3.2011 of Rs. 1349.54 crore, to be waived off.
vi. Property and Assets will be transferred on book value to PB as per
provisions of Section 16(a) of the Prasar Bharati Act, 1990. Normal
accounting principles will be followed to determine their future value; and
vii. Director General of Audit, Central Revenues (DGACR) will continue to
be the nodal auditor of PB and will be assisted by qualified commercial
audit staff for the audit of the annual accounts.
Background:
The Prasar Bharati (PB), the Public Broadcaster in the country, has been
grappling with various financial and human resource/employee issues since
its inception, which have adversely affected its functioning as an
autonomous organization. In view of the problems being faced by PB, a GoM
was constituted under the Chairmanship of the Hon'ble Home Minister on 7th
March, 2006 to examine the issues of PB. The GoM was again reconstituted on
21.2.2011 which considered PB's future revenue earning potential given its
public service broadcasting mandate, and made a number of recommendations
for making PB a financially viable and sustainable organization.
***
SC/SKS
Press Information Bureau
Government of India
Ministry of Information & Broadcasting
14-September-2012 19:30 IST
[Via dx_india]
