Prasar Bharati reserves depleting, warns I&B

NEW DELHI: The Information and Broadcasting Ministry has expressed fears that the entire available reserves of Prasar Bharati would be wiped out if the trend of mounting deficits continues, resulting in immense financial stress.

The Ministry told the Standing Committee on Communications and Information Technology that "after assessing the non-Plan budgetary support provided by the Government during 2009-10, 2010-11 and projections for the year 2011-12 as also 10 per cent growth in revenue during 2011-12, Prasar Bharati has estimated a deficit to the tune of Rs 8.04 billion for these three years."

According to the Ministry, however, the revenue of Prasar Bharati has not increased according to earlier projections while the cost, particularly under the salary head, has gone beyond the projections.

The Committee wants the Government to bear the gap between the working expenses and the earnings of Prasar Bharati by budgetary support till Prasar Bharati is able to generate the mandated revenue to attain self sufficiency.

At the same time, Prasar Bharati was exhorted by the Committee to take all the required initiatives to increase the revenue. Besides, all the economic measures should be taken to reduce the working expenses of Prasar Bharati.

Since Prasar Bharati is unable to bear 50 per cent of the annual expenses from its Internal Extra Budgetary Resources as recommended by the Group of Ministers, it has now proposed a new funding pattern for re-fixation of Government support to meet its financial obligations. (The GoM had earlier recommended that 50 per cent of the annual operating expenses of Prasar Bharati should be borne by Prasar Bharati from its IEBR and the remaining 50 per cent will be met from non-Plan grants-in-aid from the Government.)

While expressing serious concern over the increasing gaps between the revenue projections and revenue receipts and appreciating that Prasar Bharati is a public service broadcaster and not principally guided by commercial consideration, the Standing Committee said it was "of the firm opinion that its mandate does not restrict it from generating adequate revenue to meet its operational cost."

In fact it noted that in the Outcome Budget 2011-12, there was specific mention that All India Radio can generate revenue through Public Private Participation (PPP) during the next 10 to 15 years through schemes like sharing of Prasar Bharati infrastructure such as towers etc., building and land with private broadcasters, mobile service providers on licence basis; providing value added service such as IVRS and SMS based service to the listeners; rationalization of rate structure of the rental resources; turnkey solutions for establishing 50/100 watt community radio stations to Universities/Colleges/residential schools etc and through Data Audio Channel service.

The Committee said: ?It is inexplicable as to why Prasar Bharati has not been able to implement the above schemes which in their own admission can generate revenue through Public Private Participation for the next 10 to 15 years. The Committee are of the firm opinion that Prasar Bharati by taking the desired initiatives as mentioned in the Outcome Budget as well as by adopting suitable marketing strategies, content improvement and introduction of DTH services can reasonably enhance its revenue.?

The Committee?s examination of budgetary documents has revealed that the revenue receipts of Prasar Bharati have been gradually declining and the gap between the revenue receipts and expenditure has been steeply increasing.

As against the revenue projections of Rs 12.47 billion during 2009-10, the revenue receipts were Rs 11.76 billion and the expenditure was Rs 29.49 billion thus leaving a gap of Rs 17.73 billion.

The revenue projections for 2010-11 were Rs 15.62 billion against which the revenue receipts were Rs 9.69 billion and the expenditure was Rs 25.06 billion.