The information and broadcasting ministry has rejected a proposal by the state broadcaster, Prasar Bharati, to impose a licence fee for television sets and radio sets.
Prasar Bharati had suggested to the government that the licence for radio and television sets be reintroduced and that the money collected be given to the state broadcaster to fund its requirements.
"It was not acceptable to the government as it felt that the licence system was removed after some thought. We do not think it is logical to reintroduce it to fund Prasar Bharati's operations," a senior information and broadcasting ministry official said.
According to the official, Prasar Bharati proposed the reintroduction of the licensing structure as it wanted to reduce its dependence on commercial revenue.
Prasar Bharati was of the view that it was a public broadcaster and dependence on commercial returns was detrimental to its objectives.
Sources in the I&B ministry said the Cabinet Committee on Economic Affairs would, in its next meeting, take up the issue of Prasar Bharati starting its direct-to-home services.
Prasar Bharati's DTH venture will be a non-commercial venture and will offer channels on its platform on a free-to-air mode. Any channel wanting to offer it on the Prasar Bharati platform will be required to offer services free.
Prasar Bharati's Rs 500-crore (Rs 5 billion) DTH project is, however, not covered by the licensing norms for DTH services, as it is treated as a special case.
"The licensing conditions for DTH does not apply to Prasar Bharati as it is not a commercial venture," sources said.
Sources also said Prasar Bharati will execute the DTH project on its own and will not partner with any private players.
Prasar Bharati, which would be executing the project through Doordarshan, is also in talks with various private channels to come on to its platform.
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