The Tamil Nadu government has decided to provide cable TV connections through a separate corporation. Announcing this recently, chief minister M Karunanidhi said based on initial projections, the provision of cable TV connections would help the state earn revenue of up to Rs 500 crore a year. Measures like this would help both ways–increase revenue without increasing the tax burden on citizens, he added.
The government has appointed Brijeshwar Singh, former director-general, All India Radio, as chairman of the corporation, which will function as a multi-system operator (MSO) in Chennai, where conditional access system is in force, and as a cable TV operator in the rest of the state. The CM said the corporation would work in a way similar to private MSOs and cable operators may get connections from the government, if they choose to.
The government’s move to set up a cable TV corporation is being seen as an extension of the family feud with the Marans, as it would directly compete with Sumangali Cable Vision (SCV), which controls most of the cable TV business in TN. According to the Maran’s Sun TV Ltd’s red herring prospectus, “SCV is owned and controlled by Kal Cables Pvt Ltd, an affiliated company, in which Kalanidhi Maran has a majority equity interest.”
Ironically, DMK had opposed the previous AIADMK government when it passed the Tamil Nadu Acquisition, Transfer and Taking Over of the Administration of Cable Television Network (including multiple service optical transport system) Bill, 2006.
