Cabinet okays
financial restructuring of Prasar Bharati |
The
Union Cabinet today (14-09-2012) 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.
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