Sources told PTI that ministry officials led by I&B Secretary Uday Kumar Varma held a meeting with Cable TV Equipment Traders and Manufacturers' Association (CTMA) and representatives of the Multi System Operators (MSOs).
After implementation of the first phase of digitisation, the I&B has been keen to increase the share of indigenous producers of STBs.
Officials said in the meeting, the MSOs, who buy and instal STBs, were positive about patronising the domestic STB industry provided prices happen to be competitive.
However, certain issues including those related to taxation featured among the concerns of manufacturers, who sought a more encouraging government policy to help promote the industry.
It was decided that the I&B ministry would approach the Department of Revenues and the Ministry of Communication and Information and Technology to seek a solution to encourage the entry and growth of domestic STB manufacturers, officials said.
"The need to encourage domestic set top box manufacturing has been recognised and producers have been asked to look at capacity building and upscaling production in order to leverage the opportunity," Varma said.
After the four metros, the ministry is now working to implement digital cable in Phase II cities, wherein the digitisation deadline in 38 cities in 15 states expires on March 31.
Digitisation has provided a huge demand for STBs but in the first phase most of this was met by foreign manufacturers.
According to ministry data, as on November 5, 2012, 22.4 lakh STBs have been installed in Mumbai, 25.15 lakh in Delhi, whereas in Kolkata 17.74 lakh STBs have been installed.
Hundreds of STB have also been installed in Chennai where the matter pertaining to digitisation of cable is currently in court.
