Importance of Direct & Complete Funding to AIR & DD.

http://www.friendsofprasarbharati.org/funding.htm
By:Joseph Martin C.J

In a democratic country like India, media has to play an important role in

the functioning of the democracy. A democracy can not be a true democracy unless
all its citizens are well informed about the political, social and economic
developments around them and able to form unbiased opinions and able to take their
own informed decisions freely and fairly in elections and other democratic practices
of the country. Due to this reason only we often call media or press the fourth pillars
of democracy or the fourth estate.

Recently a prominent journalist of our time and Magsasay award winner P.

Sainath while commenting on the degradation of media in recent times lamented that
4th Estate has become real estate now a days. Commercial media particularly
commercial broadcasters of our country reached such a pathetic condition that all
enlightened citizens of this great country are more and more becoming aware and
started thinking about the adverse consequences it may have on all spheres of social
sphere (life), and also to the democratic fabric of our country.

If the recent developments (happenings) in the media are allowed to

continue unchecked and unregulated we need to doubt that, are we heading to an era
of Corporate democracy instead of citizens democracy as visualized by the founders
of the constitution of our country.

Recently our Nation witnessed a series of discussions about the Paid news
culture as alleged by most of our political parties & other organizations in the last
general elections. The editor’s guild of India condemned it. The Hon’bl Vice
president of India also criticised it. Some of the leaders of the National political
parties even demanded EC to declare the paid news culture as electoral malpractices.

For the better functioning of our democracy, the need and necessity of a
National Media (in the sense it reaches to all citizens of this nation) not controlled by
and independent of corporate and other market forces has become evident from the
recent developments in the media world.

Media involves huge capital expenditure and it needs capital for its operation
and maintenance also .It is quite natural that there will be motive of profit in any
capital involved business. But there needs to be limit to the greed of our media
houses. We cant expect much good from the private commercial broadcasters which
is controlled by and dependent on the vested corporate and market forces to the ideal
or better functioning of our democracy and for its citizens.

But the democratically elected government of this country is bound to give its
citizens a National Media which t is not controlled by and not dependent on the
greedy market and corporate forces. For any media organization to be effective in its
functioning the source of its funding is very important.

All India Radio and Doordarshan is in its cross roads considering the fact
that the re - constituted GOM has taken decisions regarding one of the most
important thing “ the funding pattern of Prasar Bharati and its financial & capital
restructuring .

In the pre –globalisation era the biggest threat to the proper functioning
media in general and All India Radio and Doordarshan in particular was political in
nature .But now that scenario changed drastically .Now the real threat is from the
greedy capitalist and market forces. In this changed scenario we need to consider the
latest Group of Ministers (GOM) descision of financial & capital restructuring of All
India Radio and Doordarshan (Prasar Bharati) .The financial & capital restructuring
of All India Radio and Doordarshan there in the agenda of the previous GOM also.
The Group of Ministers (GOM) on its meeting held on 31st August 2006 had
discussed about issuing public shares of Rs.4800 Crores of PB to cover its losses.

The newly constituted GOM held a meet on 16-04-2010. According to

media reports the main agenda of that meet was to discuss about tapping the capital
market and other financial institutions for generating funds on its own, for funding
AIR & DD.The GOM meet held on 16-04-2010 has decided to cap the Center's
annual financial support to Prasar Bharati at 50 per cent of its operating expenses, and
to transfer all property and assets to its books at the cost they were originally
acquired.

“It will be for Prasar Bharati to fend for itself and raise the balance 50 per cent
of operating expenses through internal and extra budgetary resources over the next
five years,” an official told the press. The element of state financial support will be
further curtailed after 2014-15, the official added. Finance Ministry officials present
at the meeting said the decisions take effect from the current fiscal 2010-11 and will
be reviewed after five years.

On 09.03.2010, Hon’ble Minister of State for I&B Shri. Mohan Jatua, tabled in
the Lok Sabha the following statement , regarding the details of income,
expenditure and gap in income & expenditure of All India Radio & Doordarshan for
the last four years as under: (STARRED QUESTION NO .166 ANSWERED ON
09.03.2010 in the LOK SABHA ,link to the statement
http://164.100.47.132/LssNew/psearch/QResult15.aspx?qref=83283) .For our readers
convenience we are attaching the above said statement in the annexure of this article.

Financial Year Income Expenditure Gap Between Expenditure & Income

2006-07 983.05 1954.67 971.62
2007-08 1035.86 2057.92 1022.06
2008-09 1096.78 2518.88 1422.10
2009-10 1119.00 3098.00 1979.00
Amount in Crore of Rupees,For the year 2009-10 figures are provisional.

It is evident that Prasar Bharati was not able to generate 50% of its
operating expense in the last four financial years .In this scenario how and from where
the remaining money (Gap Between Expenditure & Income) will be raised?.

The public broadcaster would now have to tap the capital market and other
financial institutions for generating funds (funds for the Gap Between Expenditure &
Income) ,since it may not be possible by All India Radio and Doordarshan to
generate the 50% of the operating expenses while maintaining the programming
quality and dignity of the National & Public Service Broadcaster of a democratic
country. In fact the government is deliberately dragging All India Radio and
Doordarshan to the mercy of the capitalist and market forces .We need to oppose this
intention of the government

The decision of the GOM is bound to have a long-term negative impact on

the financial health of Prasar Bharati and its effective functioning. If it is
implemented the National broadcaster & Public Service Broadcaster of this
democratic country may become a public limited company and will become, just a
tool in the hands of market forces and the immediate step may be disinvestment by
government of India. If shares of PB floated in the market , it will become a entity
solely at the mercy of market forces which will defeat the very fundamental
objective of the National & Public Service Broadcaster. It is a move totally against the
interest of the entire Nation and its democracy, and against the genuine interest of the
employees.

The funding pattern that existed in All India Radio and Doordarshan
changed in April 2000 as per the MOU signed by two IAS officers – the then
secretary of MIB and the then CEO Prasar Bharati , (who was also holding the post of
additional Secretary in I&B). Due to this MOU only the present funding pattern of
grant in aid and loan from GOI came in Prasar Bharati. It is true that grant in aid and
loan from GOI was there in section 17 of the act, But it needs to be understood
clearly that the main source of funding as per PB act was the so called License fee
from television and radio set owners and not grant in aid or loan from government
of India.

In 2007 the Group of Ministers (GOM) , headed by then Home Minister

Shivraj Patil had considered the I&B ministry recommendation to charge license fee.
But due to the strong opposition from finance ministry and from opposition parties
and also from the Consumer Electronic and Appliances Manufacturers Association
this recommendation of the I&B ministry had been rejected by the GOM. The I&B
ministry then wanted a block payment from the government to make up for this loss
(due to the never charged license fee), which may have helped the corporation to
become financially self-reliant , just as the Memorandum of Understanding between
Prasar Bharati and the ministry expected.

Actually there is no difference between funding of AIR & DD by the license

fee collected and the direct funding by the government. License fee is directly
collected from the television & radio owners for a particular cause (for funding
Public Broadcaster). But in the case of direct funding the money is from a common
fund .But that common fund also is collected from us only, directly or indirectly, Both
are taxpayers money only.

One of the argument in favour of of license fee is the concept that the direct
funding may affect the independence and autonomy of the Public Broadcaster. The
advocates of license fee think that the direct funding will make direct influence of the
government . If that argument is to be believed how we can say that our constitutional
bodies (eg. judiciary, Election Commission..etc.) are independent, because they are
also directly funded by the government. So The very argument that the direct funding
by the government may effect the independence and autonomy of an organaisation is
a biased view only. Please read the article License Fee and Direct funding of the
Public Broadcaster. for more views in this subject.

Being the national media with vast reach, All India Radio and
Doordarshan have been playing a pivotal role as instruments of social and economic
developments besides playing a great role in national integration and entertaining the
people ,even in the border areas and in the remotest terrains.

Section 12-1 of the Prasar Bharati act says that it shall be the primary duty
of the corporation to organize and conduct public service broadcasting services to
inform ,educate ,and entertain the public and to ensure a balanced development of
radio & television. Section 12.2 (b) to 12.2(p) of the act defines the duties of Public
Service Broadcaster and 12.2(a )defines the duties of the national broadcaster for
upholding the unity and integrity of the country and the values enriched in the
constitution.

It is a fact that most of the countries in the world are maintaining their
National Broadcasters for protecting the interests of the respective countries. Going
by the global trend in other democratic countries All India Radio and Doordarshan,
being the National & Public Service Broadcaster, need to be completely and directly
funded by the government to discharge its duties as the National & Public Service
Broadcaster.

In view of the multidimensional Socio – cultural fabric of our nation , the

age old broadcasting organizations All India Radio and Doordarshan, which have
discharged the duties towards the National Integration , preservation of art & culture ,
socio-economic and agricultural development of the nation should not be left to the
mercy of the market forces.

Successive governments of this country had allocated lakhs of cores of

rupees to the social sector for the all round development of the underprivileged,
illiterates citizens majority of whom are living in the remote areas of our country
where even electricity is not reached. Govt. needs a medium to propagate its
developmental schemes, envisaged for the underprivileged, illiterate citizens of our
nation . In fact All India Radio and Doordarshan is the only medium government can
be used effectively for this purposes, considering All India Radio and Doordarshan’s
pan Indian presence. In this sense, the AIR can be served as a bridge between the
policy-makers and the people for whom the policies were framed

A democratic government should consider the National & Public Service

Broadcaster in social sector only. Against this ideal concept the successive
governments of this country has forced All India Radio and Doordarshan to
generate its own revenue for its operations even by neglecting the mandate given by
the Parliament of this country to All India Radio and Doordarshan to inform educate
& entertain the public. But it goes with out telling that while performing the noble
duties of the National & Public Service Broadcaster of this democratic country, It will
not be possible by All India Radio and Doordarshan to generate its revenues just like
a private commercial broadcaster.
 A major section of employees who whole heartedly welcomed the
formation of Prasar Bharati now demands for the repeal of the Prasar Bharati act due
to the main reason that Prasar Bharati is not financially viable in the present situation
as it is proved beyond doubt. The apprehension of the above section of employee is
confirmed by the fact that even the Prasar Bharati Corporation demanded for the full
government funding for All India Radio and Doordarshan to enable them to perform
their role as a public broadcaster & National broadcaster. The Prasar Bharati Board
conveyed its views on this issue to the Parliamentary Consultative committee which
held its meeting at New Delhi on Feb 19,2010. According to sources, the Prasar
Bharati told the Parliamentary panel that if it is made to depend on commercial
programming for its funding, its mandate as public broadcaster would be affected.
This should be an eye opener for those section of employees who demands for the
complete implementation of Prasar Bharati Act with out considering its financial
viability .

But the employees demanding for the Repeal of the Prasar Bharati act
should not forget the fact that through this Act only All India Radio and Doordarshan
got the mandate of the parliament to inform , educate and entertain the public as
Public Service Broadcaster and as National Broadcaster for upholding the unity and
integrity of the country and the values enriched in the constitution of this country. But
the capitalist & market forces influencing or controlling All India Radio and
Doordarshan directly or indirectly will be the worst that can happen to All India
Radio and Doordarshan,than anything else.

In both situations (AIR & DD under the direct control of the government or
under Prasar Bharati) direct and completing funding of All India Radio and
Doordarshan by the government is the pre-requisite for its effective functioning as a
true Public Service Broadcaster and National Broadcaster of this largest democratic
country in the world.