Cable TV digitisation yields results

23-02-14

Cable TV digitisation yields results:

Rise in entertainment duty recovery

* Before installation of set top boxes in Nagpur district, cable TV connections were only 88,000. At the end of January 2014, the number has increased to a whopping 4.99 lakh

By Kartik Lokhande
Digitisation of cable television or installation of set top boxes (STBs) met with opposition and criticism from cable operators one year ago. However, digitisation appears to have yielded positive results for the Government at least on the count of revenue collection.
As against the target of Rs 22.90 crore for collection of entertainment duty in six districts of Nagpur Division, Revenue Department has recorded recovery of Rs 22.03 crore, that too, at the end of January itself. The targets and recovery relate to financial year that starts on April 1 of a year and ends on March 31 of the next year. As against the target of Rs 21.15 crore for 2012-13, the recovery of entertainment duty was Rs 17.51 crore in Nagpur Division. Thus, compared to the previous financial year (2012-13), when cable TV digitisation had not been made mandatory, the recovery in this financial year (2013-14) has improved by Rs 4.52 crore!
Prior to digitisation of cable television, there were occasions when target for entertainment duty collection for Nagpur Division alone was revised. In a financial year, target was scaled down by Rs 13 crore. Based on such past experiences, target for entertainment duty collection saw upward revision by Rs 1.75 crore only for 2013-14, the first year after digitisation of cable TV. Then, many had opined in the meetings that target should have been higher considering rise in number of reported connections of cable TV. But, many others in Revenue Department had said that the target was ‘realistic’. Previously, they had said, targets were set without considering ground realities.
Before digitisation of cable TV or installation of STBs, number of cable TV connections in Nagpur district was 88,000 only. Now, as per the figures available as on January 31, 2014, number of cable TV connections in Nagpur district alone has increased to a whopping 4,99,001. This is five times the number reported by cable TV service operators before installation of STBs. Sources said that this increase in reported connections is one of the factors contributing to improvement in entertainment duty collection. Still, barring Nagpur district, other five districts namely Wardha, Bhandara, Gondia, Chandrapur, and Gadchiroli have not crossed revenue target for 2013-14 by the end of January. Officials in Revenue Department expect entertainment duty collection to register more increase by the end of March.

Recovery of Entertainment Duty  

---------------------------------------------------------------------------------------

District             2012-13                                    2013-14

                    Target         Recovery           Target         Recovery

---------------------------------------------------------------------------------------

Nagpur         Rs 13 cr     Rs 11.11 cr         Rs 14 cr       Rs 14.82 cr

Wardha        Rs 1.75 cr   Rs 1.32 cr          Rs 1.93 cr    Rs 1.37 cr

Bhandara     Rs 1 cr        Rs 73.62 lakh    Rs 1.09 cr    Rs 84.93 lakh

Gondia         Rs 95 lakh  Rs 63.07 lakh    Rs 96 lakh    Rs 75.42 lakh

Chandrapur Rs 3.75 cr    Rs 3.04 cr         Rs 4.09 cr      Rs 3.47 cr

Gadchiroli    Rs 70 lakh   Rs 66.28 lakh   Rs 75.89 lakh  Rs 91.43 lakh

----------------------------------------------------------------------------------------------------------------

Total         Rs 21.15 cr     Rs 17.51 cr        Rs 22.90 cr     Rs 22.03 cr

----------------------------------------------------------------------------------------------------------------

(The recovery for 2013-14 is till January 31, 2014)


Cable TV, DTH connections

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District         Cable connections     DTH connections

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Nagpur            4,99,001                   1,41,877

Wardha              44,063                      18,595

Bhandara          19,304                       17,470

Gondia              14,362                       25,889

Chandrapur      99,194                       33,813

Gadchiroli         12,572                      19,701

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Total             6,88,496                     2,57,345

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