Cabinet okays DTH with maximum 49 per cent foreign equity
New Delhi: While the cabinet gave its nod to allow direct-to-home television services in the country, the industry players are of the opinion that it has become very expensive to enter into the business.

According to the new liberal rules, there will be a cap of 49 per cent for foreign equity, with broadcasting and cable network firms not eligible to own more than 20 per cent of the total equity. Further, while no restrictions have been put on the number of players, the government has indirectly restricted the number by imposing an entry fee of Rs 10 crore, along with a Rs 40 crore bank guarantee. The license is valid for a period of 10 years.

In addition, the cabinet has imposed two other stringent conditions, that are likely to deter people from entering the business: DTH platform owners have to pay 10 per cent of their revenue as annual fee and secondly, it will be mandatory for the licensee to put in place uplink earth within 12 months from the date of issue of license.

However, what can, possibly, lure potential investors is the fact that DTH service providers can offer value added services including voice, fax, data communication and internet after obtaining basic telephone and ISP licences.

The government has made it mandatory on all DTH platform providers to carry specified channels of Prasar Bharati. This will be on the same terms and conditions as offered to any other channel.

With the consumer in mind, the government has also mandated use of a non-proprietory open architecture technology for set top box along with single conditional access technology, single subscribre management system and a cast iron encryption system.

Any violation of licensing conditions may call for a penalty upto Rs 50 crore along with revocation of the license.
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Government unveils landmark textile policy
New Delhi: In a landmark decision, the cabinet approved the new national textile policy that dereserves the garments sector and lifts the foreign direct investment cap of 24 per cent. Until now, the garment sector is reserved for SSIs and there is a ceiling on investment of Rs 3 crore and the cap of 24 per cent FDI equity.

It is hoped that both these measures will will help India face competition from neighbouring countries, like Bangladesh, Sri Lanka and Pakistan, in the garments sector and push up its exports from $5 billion to $25 billion in ten years.

The policy, which replaces the 1985 textile policy, does not, however, change its stance on the handloom sector for which it has listed several encouraging measures.

The policy also provides for setting up a venture capital fund for tapping knowledge-based entrepreneurs and assist the private sector to set up specialised financial arrangements to fund the diverse needs of the textile industry.

It also seeks to increase cotton productivity by at least 50 per cent besides upgrading its quality to international standards through effective implementation of the cotton technology mission.
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Cement companies in the south act in concert
Hyderabad: Despite sluggish offtake in the market and a noticeable decline in demand, cement companies in the south have done well in the second quarter thanks to a concerted, "cartel-like" approach by the players.

Following the coordinated approach, the rate of a 50-kg cement bag, which was quoting at Rs 90 (dealer price) in Hyderabad, went up to Rs 150 by August and stabilised.

Prices in Chennai and Bangalore moved from Rs 140 to Rs 170, while in Kerala it went up to Rs 160 from Rs 135. At the same time, prices in the western and northern markets remained stagnant, while in the eastern market prices have comedown slightly.

According to industry sources, cement companies in the western and northern markets are likely to follow their southern counterparts and raise prices in unison.
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