FM Broadcasting Services (19-Feb-2009)

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such as, interest subvention for pre and post - shipment export credit for labour 
intensive exports, additional funds of Rs. 1,100 crore to ensure full refund of Terminal 
Excise duty/Central Sales Tax (CST), additional allocation for export incentive 
schemes, Government back-up guarantee to Export Credit Guarantee Corporation 
(ECGGC) for export to difficult markets/ products, etc., package for borrowers of 
home loans of upto Rs. 5 lacs and Rs. 5 to 20 lacs, enhancing guarantee cover under 
Current Guarantee scheme for MSE sector from Rs. 50 lacs 10 Rs. 1 crore and upto 
50%, authorising IIFCL to raise Rs. 10,000 crore through tax free bonds by 
31.03.2009, etc. 


(v) On 02.01.2009, Government announced another stimulus package providing, 
inter-ala, additional measures for the economy such as - (a) setting up of a special 
purpose vehicle (SPV) to provide liquidity support against an investment grade paper 
10 NBFCs-ND-SI. The total support from the Reserve Bank will be limited to 
Rs.20,000 crore with an option to raise it by a further Rs. 5,000 crore. (b) upward 
revision of credit targets of Public Sector Banks 1o reflect the need of the economy, 
(०) increasing the guarantee cover to micro enterprises by Credit Guarantee Fund 
Trust from 50% 10 85%, (d) allowing State Governments to raise additional market 
borrowing of 0.5% of their Gross State Domestic Product (GSDP) for capital 
expenditure, during the current financial year, (9) enabling IIFCL to raise an additional 
Rs. 30,000 crore by way of tax free bonds and (f) providing assistance to states 
under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for purchase 
of buses for their urban transport system. 


The detailed notifications/press releases issued by Government and RBI are available at 
their respective websites www.pib.nic.in and www.rbi.org.in. 


FM Broadcasting Services 
*76, SHRIMATI VIPLOVE THAKUR: Will the PRIME MINISTER be pleased to state: 


(a) whether it is a fact that Government has, recently, modified Clause 8.3 of policy 
guidelines on expansion of FM Broadcasting Services through private agencies; 


(b) if so, the details thereof along with the reasons therefor; and 
(०) the salient features of the modified new policy? 


THE MINISTER OF STATE IN THE MINISTRY OF INFORMATION AND BROADCASTING 
(SHRI ANAND SHARMA): (a) Yes, Sir. Government has modified clause 8.3 of the FM Phase-Il 
Policy Guidelines on expansion of FM Broadcasting Services through Private agencies in 
September, 2008. 


(b) to (०) The Policy was modified with a view to promote the healthy growth of radio 
business in view of the request of applicant companies seeking change in shareholding pattern 


42 


for purposes of demerger/amalgamation of the radio business. In accordance with the modified 
policy, the Ministry has been authorized to grant permission to the FM Broadcasting companies 
for creation of subsidiaries, merger/demerger/amalgamations of companies by way of transfer 
of shares within the period of five years from the date of operationalization of the channel, 
subject to the fuffillment of the following conditions = 


(0) The majority shareholders/promoters would continue to remain as majority 
shareholders/Promoters and together should hold at least 51% of the total shares. 


(1) The new corporate entities would maintain their FD! Component within the prescribed 
limit and would not violate the terms and conditions of the tender document and Grant 
of Permission Agreement. 


Gi) The new Corporate entities should have minimum prescribed net worth and adhere to 
all the terms and conditions of the tender document and the provisions of the 
agreement. 


(४) The new Gompany shall sign a fresh agreement with Government on identical terms 
and conditions (except for transferability of Shares as provided herein) for the 
remaining period of license of the original company. 


(४) Such transfer of shares would be permitted only once during the first five years period 
from the date of operationalization. 


(vi) No New tax regime will be designed to provide any incentive to encourage creation of 
subsidiaries, merger/demerger, amalgamation of FM Broadcasting companies. 


(vil) Any tax implication arising out of such merasrs/demergsrs or amalgamation would be 
governed by the provisions of the Income Tax Act, 1961 as applicable from time to 
time. 


(शा) The processes/action taken by the licensee companies including for formation of new 
companies/subsidiaries/mergers/amalgamations and/or _—_ disinvestment of 
undertakings, or part thereof, of existing companies etc., need to be compliant with 
the Companies Act, 1955. The applicant shall not dilute such requirement through its 
Articles of Association or any Agreement. 


Golden Quadrilateral Project 


+*77.SHRI PYARELAL KHANDELWAL: Will the Minister of SHIPPING, ROAD TRANSPORT 
AND HIGHWAYS be pleased to state? 


(a) whether it is a fact that the Golden Quadrilateral (NHDP Phase-I) project was 
proposed to be completed by December, 20105 


(b) ifso, the amount that could have been saved by the timely completion of the project; 


{Original notice of the question was received in Hind.