| One of the issues brought up by the Star team during
its meeting with Reddy related to a delay in the I&B ministry
clearing the DTH joint venture's quest for a licence. "They did
request for a faster clearance (of the DTH project)," the government
official admitted, when asked about the issues brought up by Star.
Though Star Group CEO Michelle Guthrie refused to make any comments
to journalists on the two meetings she had with government representatives
today, officials said that Star is pushing for ironing out objections/clarifications
related to the proposed DTH venture.
Another point that was referred to by the Star team during its
meeting with the I&B minister related to a foreign investment
cap of 20 per cent in DTH ventures as per sector guidelines.
"The point whether the foreign investment cap could be increased
so as to give foreign players slightly more say in DTH ventures
was made by Star during the meeting with Reddy," a senior government
official said, pointing out that Reddy gave them nothing more than
"just a patient hearing."
The Star team included Star India CEO Peter Mukerjea, apart from
others.
However, when asked whether the I&B ministry still finds the
Tate-Star DTH venture licence application inadequate in some ways,
the official said, "The government has no prejudice against
anybody. More so, the majority partner is an established Indian
business house."
"The I&B minister is understood to have conveyed to the
Star Team that the DTH application would be "dealt according
to the law of the land." The Tata-Star Rs. 1.6 billion (Rs.
1,600 crore) DTH television service, as per announcements, has been
scheduled for a year-end launch. But various clearances have taken
up lot of time even after a previous application for a DTH licence
was re-worked after roping in the Tatas. The present status of the
application is that it's awaiting a clearance from the I&B ministry
for a letter of intent. Ministries of finance and home have already
cleared the
project.
In January 2004 , Tata Sons had announced the formation of a joint
venture with the Star Group for launching a DTH platform in India.
According to the announcement, the Tata Group would hold 80 pr cent
in the JV entity, which is aiming to build India's largest digital
television platform, offering a range of channels, including exclusive
ones, with interactive features and services.
However, the government official denied that the controversial
issue of Radio City was brought up during talks with Reddy. The
present government's allies have criticized several times the Radio
City venture where the licence holder is Music Broadcast Pvt Ltd,
while Star provides and marketing, content and other infrastructure
support.
Star's business partner-turned-rival in India, Subhash Chandra,
has already launched the country's first DTH service in October
last and offers a variety 50 channels at the moment for a monthly
subscription of Rs 220.
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