Free Press Journal

I&B seeks over Rs 2000 crore from DTH companies as license fee


New Delhi: The Information and Broadcasting Ministry has raised a demand of over Rs 2000 crore from six private Direct To Home (DTH) companies, which it says owe this amount as the license fee.

The ministry had sent the demand letters to all the six DTH players which collectively amount to around Rs 2,068 crores, officials said.

Officials said that as per the guidelines for DTH services, the licensee’s are expected to pay an annual fee which is equal to ten percent of the firm’s gross revenue.

However, the matter was contested by the DTH firms as they disagreed with the criteria laid down by the ministry to calculate gross revenue and the issue has been going on in the courts for some time now, sources said.

“Though cases related to the matter are still sub judice, the ministry sought legal opinion to know whether it could raise the demand as per the gross revenue criterion. After receiving the legal opinion, the ministry has raised the demand,” a senior official said.