Cable television operators have sought tax incentives and capital subsidies to promote manufacturing of set-top boxes in India.
According to K. K. Binani, Secretary of the Kolkata-based Cable TV Equipments Traders and Manufacturers Association (CTMA), currently a mere five per cent of the required set-top boxes are manufactured domestically.
“Manufacturing of set-top boxes is at a very nascent stage in India now. The Government should offer fiscal incentives such as tax holidays for at least three years and capital subsidies to encourage production of set-top boxes domestically,” Binani said here on Tuesday.
He was speaking to reporters on the sidelines of three-day fair of the satellite and cable TV industry – Cable TV Show 2013.
Asked about availability of technology in India, Binani said: “If the Government offers fiscal incentives, technology can be developed locally.”
A Delhi-based cable TV equipment maker, however, said Indian manufacturers might find it difficult to sell set-top boxes at rates as cheap as those offered by their Chinese counterparts.
CTMA has opposed the Budget proposal that seeks to increase import duty on set-top boxes.
Meanwhile, Binani pointed out that more than 90 per cent of the cable TV households have been digitised in the Kolkata Metropolitan Area so far, entailing an overall investment of nearly Rs 600 crore. According to him, the industry in West Bengal is expected to be worth Rs 1,200 crore over the next 14 months.
ayan.pramanik@thehindu.co.in