STAR uplink awaits home ministry nod

As per the norms, a security clearance from the home ministry is mandatory before a channel is given the permission to uplink from the country. The licence to uplink would be given to the company only after the home ministry gives its clearance.

The foreign investment promotion board (FIPB) had cleared MCCS' proposal for restructuring its uplinking entity to conform with the foreign direct investment (FDI) norms last week.

"The ministry of information and broadcasting has given its clearance to the application by Star News. The application is now pending before the home ministry for its mandatory clearance," a senior government official said.

STAR TV, which offloaded 74 per cent stake in the uplinking company MCCS to the Kolkata-based Ananda Bazar Patrika Ltd, had applied afresh last month.

The fresh application by MCCS followed the government's decision to tighten uplinking guidelines, in which it stipulated that an Indian entity should hold at least 51 per cent equity.

According to the company's application, ABP Limited will invest Rs 74 crore for a 74 per cent stake in MCCS, while STAR would invest Rs 26 crore for its stake in the company. Star Group has picked up its holding in MCCS through Star News Broadcast Limited (SNBL).

As per the revised application, MCCS, which has been airing the channel on a temporary licence so far, has a proposed a paid up equity base of Rs 62.50 crore and an authorized capital base of Rs 70 crore.

The company had applied afresh last month. The fresh application by MCCS followed government's decision to tighten up-linking guidelines, in which it stipulated that an Indian entity should hold at least 51 per cent equity.

The first application of the company had run into trouble with the government asking the company to adhere to the policy in letter and spirit.

As per the first application, the Indian shareholding in the company was spread across a clutch of high networth individuals. Government had doubted that this has been to done to circumvent the policy and to give the foreign partner complete control of the operations of Star News.