GOVERNMENT OF INDIA
MINISTRY OF INFORMATION AND BROADCASTING
LOK SABHA
UNSTARRED QUESTION NO .234
ANSWERED ON 27.07.2010
FINANCIAL RESTRUCTURING OF PRASSAR BHARATI
234 . Shri P. BALRAM

Will the Minister of INFORMATION AND BROADCASTING be pleased to state:- (a) whether the Government has any proposal for the financial restructuring of Prasar Bharati;

(b) if so, the details thereof; and

(c) if not, the reasons therefore?
ANSWER

MINISTER OF THE STATE IN THE MINISTRY OF INFORMATION AND BROADCASTING (SHRI C. M. JATUA)

(a), (b) & (c): The GoM on Prasar Bharati constituted on 10.02.2010 to examine various issues pertaining to functioning of Prasar bharati has examined the issue of capital restructuring and funding pattern and has recommended as under: -

(i) 50% of the annual operating expenses of Prasar Bharati should be borne by Prasar bharati from its Internal Extra Budgetary Resources and the remaining 50% will henceforth be met by Non-Plan grant-in- aid by the Government.

(ii) The level of 50% Non-Plan support by the Government may be maintained for the next 5 years i.e. 2010-2011 to 2014-2015 and will be reviewed thereafter in order to scale down the quantum of Non-Plan support by the Government to Prasar Bharati.

(iii) Space segment and Spectrum charges incurred by Prasar Bharati will also be included in computing the total operational expenses.

(iv) Accumulated arrears of Space segment and Spectrum charges upto 31.3.2010 may be waived.

(v) Plan Capital funding by Government to Prasar Bharati may henceforth be in the form of grant-in-aid and not in the form of loan.

(vi) Director General of Audit, Central Revenues (DGACR) will continue to be nodal auditor of Prasar Bharati and will be assisted by qualified commercial audit staff for audit of the annual accounts.

(vii) Recommendations on non-cash proposals made by the earlier GOM have been reiterated.

(viii) The issue of whether there are any balance in the Non-Lapsable Fund available for transfer to Prasar Bharati is to be taken up with the Controller General of Accounts, and in case there is any amount required to be transferred the same shall be communicated to the Department of Expenditure for effecting transfer of the funds as per the provisions of the Act.

(ix) Property and Assets will be transferred on book value to Prasar Bharati as per provisions of Section 16 (a) of the Prasar Bharati Act, 1990. Normal accounting principles will be followed to determine their future value.