Par panel asks I&B min to help Indian set top box producers

A Parliamentary panel has asked the Information and Broadcasting Ministry to consider the issue of long-term financial support to Indian manufacturers of Set Top Boxes to help them face competition from Chinese companies.
The Digitisation of Cable TV sector was initiated by the previous UPA government to phase out analog TV distribution system for offering varied choice to viewers and better quality viewing.
As lakhs of Set Top Boxes were seeded (installed in houses) under this drive in the first three phases, including in all major cities, it was realised that a majority of STBs being were imported.
In a report tabled in Parliament earlier this week, the Standing Committee on Information Technology noted that as per information given by Consumer Electronics and Appliances Manufacturers Association (CEAMA), 19 companies are indigenously manufacturing STBs and they have sufficient capacity to meet the demand of cable TV digitisation.

"CEAMA has also informed that they can even scale up the capacity if there is a demand but for that there is need of Government support in creating a level playing field for domestic STB manufacturers to compete with the Chinese imported STBs," the panel said in its report.
The panel said it had been given to understand that Chinese lenders were extending easy long-term credit to Indian importers buying STBs manufactured there but it was not available to the indigenous producers in the Indian banking system.

It observed that while the I&B ministry has taken some steps like reducing VAT to support domestic manufacturers, the issue of long-term financial support to domestic manufacturers to negate easy procurement of Chinese made STBs needs to be looked into and addressed suitably.

"The Ministry may also think in terms of increasing the allocation for Mission Digitisation (for cable tv) which at present is merely taking care of procedural requirement to support the needs of domestic manufacturers. This will not only give a further boost to 'Make in India' initiative of the government but also help in employment generation in a big way," the panel said in its report.
Digitisation of cable TV sector has already been achieved in almost all major cities and a majority of other urban areas. The government aims to cover all remaining areas by the end of this December 2016.