Friday, September 14, 2012

Financial Restructuring of Prasar Bharati (Broadcasting Corporation of India) based on the Recommendations of the Group of Ministers on Prasar Bharati
The Union Cabinet today approved the proposal of the Ministry of Information and Broadcasting for financial restructuring of Prasar Bharati (Broadcasting Corporation of India). The proposal is based on the recommendations of the Group of Ministers (GoM) on Prasar Bharati (PB), constituted under the chairmanship of the Home Minister, to examine various issues pertaining to the functioning of Prasar Bharati.

On the basis of the recommendations of GoM, the Cabinet has given its approval for the following in order to improve the overall financial management of Prasar Bharati (PB):-

i. During the next five years from 2012-13 to 2016-17, Government non- Plan support will be made available to PB for meeting 100 per cent expenses towards salary and salary related expenses. All other operating expenses to be borne by PB out of internal revenue earnings.

ii. Plan capital support by the Government to PB will be in the form of grants-in-aid only and not in the form of loan.

iii. Accumulated interest on loan-in-perpetuity, interest on capital loan and penal interest thereon payable by PB to Government will be waived off.

iv. Loan-in-perpetuity and capital loans provided to PB will be converted into grants-in-aid.

v. Accumulated arrears of space segment and spectrum charges accrued to PB upto 31.3.2011 of Rs. 1349.54 crore, to be waived off.

vi. Property and Assets will be transferred on book value to PB as per provisions of Section 16(a) of the Prasar Bharati Act, 1990. Normal accounting principles will be followed to determine their future value; and

vii. Director General of Audit, Central Revenues (DGACR) will continue to be the nodal auditor of PB and will be assisted by qualified commercial audit staff for the audit of the annual accounts.


The Prasar Bharati (PB), the Public Broadcaster in the country, has been grappling with various financial and human resource/employee issues since its inception, which have adversely affected its functioning as an autonomous organization. In view of the problems being faced by PB, a GoM was constituted under the Chairmanship of the Hon`ble Home Minister on 7th March, 2006 to examine the issues of PB. The GoM was again reconstituted on 21.2.2011 which considered PB`s future revenue earning potential given its public service broadcasting mandate, and made a number of recommendations for making PB a financially viable and sustainable organization. 

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