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New
Delhi: State-owned Bharat Petroleum Corporation
Ltd from has firmed up plans to venture into the direct-to-home
(DTH) TV domain. Plans have been finalised for a push
into DTH broadcasting services through a 100 per cent
subsidiary with an initial paid-up capital of Rs95 crore.
The
decision was based on a study by KPMG and later validated
by ICICI-Securities.
BPCL
wants to float a separate company since its articles
of association does not allow a foray into the entertainment
business. At a later date, it may induct a joint venture
partner too. A financial feasibility study indicates
the payback period as 8.5 years and an 11.6 per cent
return after 10.5 years, which is expected to go up
to 23.5 per cent in 14.5 years. The firm is willing
to pump in Rs990 crore to be spent over five years.
Justifying
the diversification, BPCL told the board it has commissioned
a Ku band transponder-based VSAT hub. Experience on
the existing radio frequency system of the VSAT hub
can be used effectively while operating DTH platform.
BPCL wants to leverage its extensive network and is
confident its huge customer base would bring in users.
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