DD Free Dish Announces Relief for TV Channels, Deadline for Payment of Installments Deferred

New Delhi, May 17: DD Free Dish, the state-run satellite service provider, announced a relief for television channels by deferring the deadline for payment of installments of three months. The decision was taken by Prasar Bharti, the national public broadcasting entity which manages the functioning of DD Free Dish. Sony, Star, Zee and Viacom Make TV Channels Free for Two Months Amid Coronavirus Pandemic: IBF.

In a statement issued on Sunday, Prasar Bharti said that channels can defer the payment of installments - accrued till June 27 - provided that they submit a bank guarantee and pay a reduced late fee payment interest of 5.7 percent.

A second option is also offered to TV channels who cannot submit a bank guarantee. They can pay 67 percent of the installment amount now and the remainder 33 percent can be paid after the three-month relaxation period ends.

See Full Statement Issued by Prasar Bharti

A channel can avail of deferment from the requirement of paying the carriage fee in advance monthly instalment, upto three months, subject to it furnishing separate bank guarantees (valid for four months each) towards the amount of each instalment (plus interest @ 5.7% per annum for 03 months) and undertaking to pay the instalment amount with interest after availing of this deferment for three months.

This deferment is applicable for carriage fee instalments (2nd, 3rd& 4th instalments) for the months of May, June and July 2020 payable on 27th April 2020, 27th May 2020 and 27th June 2020 respectively.

In practical terms, it would mean that for the month of May, a channel desirous of availing this benefit can furnish a bank guarantee equivalent to the amount of instalment for the month of May by 22nd May, 2020.

For availing similar benefit for the months of June and July, it has to furnish the respective bank guarantees by 27th May, 2020 and 27thJune, 2020.

The instalments for the months of May, June and July, 2020 would become payable on 27th July, 2020, 27th August, 2020 and 27th September, 2020 respectively, along with instalments for August, September and October, 2020.

To put it in figures, if the monthly instalment of a channel is Rs. 1.5 crore and a channel has not made payment for May (which was due on 27th April, 2020) it may furnish a bank guarantee for an amount of Rs. 1.5 crore plus interest thereon @5.7% for three months by 22nd May, 2020. Similarly it need not pay Rs. 1.5 crore on 27th May, 2020 and 27th June, 2020 towards the June and July instalments. Instead it may furnish bank guarantees for Rs. 1.5 crore each plus interest thereon @5.7% for three months on 27th May and 27th June, 2020.

It would be liable to pay the three instalments of Rs. 1.5 Crore each for May, June and July, 2020 respectively on 27th July, 2020, 27th August, 2020 and 27th September, 2020 with interest@5.7% for three months along with the payment of the regular instalment for the months of July, August and September, 2020. If a channel has already paid the instalment for May, 2020 in full it can avail of the above benefit for the months of June, July and August, 2020.

Option 2

If a channel finds it difficult to furnish a bank guarantee as above, it can avail of a second option, which is that instead of paying full amount of the instalments, it can pay 67% of the carriage fee instalments for three months. The balance 33% deferred payment of monthly instalments would become payable after availing of the time relaxation of three months for each instalment. This deferment is applicable for carriage fee instalments (2nd, 3rd& 4th instalments) for the months of May, June and July 2020 payable on 27th April 2020, 27th May 2020 and 27th June 2020 respectively.

Thus, the channel would only pay 67% of the monthly carriage fee each for May by 22nd May, 2020, for June by 27th May, 2020 and for July by 27th June, 2020.

The balance 33% of the monthly carriage fee for each month plus interest thereon for three months @ 5.7% would become payable on 27th July, 2020, 27th August, 2020 and 27th September, 2020 along with the payment of the regular instalment for the months of July, August and September, 2020.

Thus, if the instalment amount is Rs.1.5 crore for each month, the channel would only pay Rs. 1 crore on 22nd May, 2020, 27th May, 2020 and 27th June, 2020. The balance amount of Rs. 50 lakhs for each month plus interest thereon for three months @ 5.7% would become payable on 27th July, 2020, 27th August, 2020 and 27th September, 2020 along with the payment of the regular instalment for the months of July, August and September, 2020.

If a channel has already paid the instalment for May, 2020 in full it can avail of the above benefit for the months of June, July and August, 2020.

The channels which do not seek relaxations as above, are offered an incentive of 0.5% on the total amount payable by them. The benefit of this incentive would be given to them by way of adjustment from the 10th instalment. For three months such channels can pay the instalments on fortnightly basis as well i.e by the 27th of the preceding month and 12th of the next month. Thus payment for June can be made in two instalments payable on or before 27th May and 12th June respectively.

In so far as the channels that have opted not to come on the platform or have gone or been removed from the platform are concerned, an option is given to them to come back on the platform and avail of the relaxations as above subject to their paying the instalment for April by 22nd May, 2020 (in case the same is unpaid).

In case of non-receipt of Bank Guarantee or payments, as prescribed in above mentioned payment options, the channel may be discontinued forthwith, without any notice.

(The above story first appeared on LatestLY on May 17, 2020 07:23 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).