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Cabinet to decide on Star news channel

Bipin Chadran in New Delhi

The information and broadcasting ministry plans to take the proposal by the Rupert Murdoch-promoted Star TV to start a 24-hour news channel in India for the consideration of the Union Cabinet.

The decision has been taken as the ministry feels that there is a need for a greater consensus before a decision is taken on the issue.

Star had sought the government's approval in October this year to start a new news-based channel in the country as its contract with the Delhi-based television production house New Delhi Television to generate news and current affairs content in India comes to an end on March 31, 2003.

Star, a wholly-owned subsidiary of News Corporation, is required to get the government clearance at the earliest as it needs time for the preparation to launch the new channel in April, 2003.

"The ministry has taken the decision to take the company's application to the Cabinet as it feels that this is an issue that requires wider discussion and collective decision of the government," a senior information and broadcasting official told Business Standard.

This is the second project by Star TV that is awaiting government approval, with the first being the direct-to-home operation in the country.

The government is yet to clear the proposal by the company to start the DTH operation that was submitted in April this year.

According to the proposal by the company, Star TV wants to run its Indian news channel through its Virgin Island-based fully-owned subsidiary called Star News Broadcasting.

As a part of the plans of the company in India, it will run its news broadcasting operations in Indian by sourcing content from Indian partners.

To provide the real time transmission of new, Star would use the facility of Videsh Sanchar Nigam Limited to transmit the content from India to Star's up-linking hub in Hong Kong.

Star will then uplink the signals to the satellite from Hong Kong. Star has also appointed Ravina Raj Kohli as president - Star News channel.

She would head the operations of the channel and report to the CEO of Star India, Peter Mukerjea.

Sanjay Pugalia has been appointed director, news, of the channel. Star television channels include Star Chinese Channel, Phoenix Chinese Channel, Star Plus, Star World, Channel [V], ESPN, Star Sports, Star Movies and Star Gold.

Star has interests in cable systems in India and Taiwan, Internet portals and services companies across the region.

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