At a time when disinvestment of public sector undertakings (PSU) is the buzzword, Punjab has decided to add one more PSU to its kitty?the Punjab Media Corporation.
In view of strong opposition from the state finance department and some cabinet ministers, the proposed media corporation may now see the light of the day in a different shape. ??Instead of an independent corporation, it would now be a subsidiary of an existing corporation??, sources in the chief minister?s office said.
The media corporation is likely to be made a subsidiary of an existing state PSU for which the proposal need not to go to the cabinet for its approval, said sources. This move has been prompted by the fact that twice this was on the cabinet agenda, but no consensus could be arrived at as there were differences over various technical and legal issues.
The issue was once again on the cabinet agenda at the meeting held on October 10. However, it was not taken up at all.
Earlier, the finance department had rejected the proposal after detailed discussion between its senior officials and that of the public relations department. In the past many years, approval has not been given to set up any corporation, except in cases where revenue flow to the proposed corporation was assured. State finance minister, Manpreet Singh Badal, who was present at the meeting said, ??the state is supposed to utilise money for development works and has no extra money for setting up bodies like a media corporation??.
According to the proposed plan, the media corporation was to recruit serving and retired journalists on contract basis to write press notes, especially with regard to development projects, to highlight the government?s performance. Besides, there was a proposal to engage consultants and experts to handle audio-visual publicity. Also, some young professionals were to be recruited on contract basis to handle public relations and develop a rapport with media establishments.
Sources said the proposes corporation, which may now come up as a subsidiary of an existing PSU, would be instrumental in saving about Rs 10 crore annually since all advertisements would be scheduled by it. The state government has an annual advertisement budget of nearly Rs 70 crore, of which 15% is paid to various advertising agencies.
Sources said all the advertisements issued by various boards and corporations in the state would continue in a similar fashion, but will be routed through the proposed corporation.
A plan to have an in-house advertising-cum -creative designing section is also being considered. According to the CM?s media advisor, Harcharan Bains, the corporation will not be a drain on the finance department, as ??it will be a self-financing entity??.