Prasar Bharati gets financial restructuring approval

Source: MM Network,  Media Mughals

September 17, 2012

 

The proposal of the Ministry of Information and Broadcasting (MI&B), for the financial restructuring of Prasar Bharati (Broadcasting Corporation of India) was approved by the government on Friday. The cabinet has given an approval to improve the overall financial management of Prasar Bharati. 

In a major step the government has agreed for a debt waiver of Rs. 1349.54 crore which constitutes the accumulated arrears of space segment and spectrum charges. Accumulated interest on loan-in-perpetuity, interest on capital loan and penal interest which is to be paid by PB has also been waived off.

The government has also agreed to meet PB's 100 % expenses towards salary and salary related expenses. However all the other operating expenses will have to be borne by PB internal revenue earnings.

Also plan capital support by the Government to PB will be in the form of grants-in-aid and not in the form of loan. Further loan-in-perpetuity and capital loans provided to PB would also be converted into grants-in-aid. 

As per the provisions of the  Prasar Bharati Act,1990, PB's property and assets will be transferred on book value .Further normal accounting principle would be followed for the future value. The Director General of Audit, Central Revenues (DGACR) will be the body responsible to audit the annual accounts of PB.