CAG castigates Prasar Bharati for its tie up terms with BCCI

By Staff
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Google Oneindia News

New Delhi, May 27 (UNI) The Prasar Bharati Corporation entered into an agreement with the Board of Control for Cricket in India(BCCI) for telecasting ODI and test cricket series in 2004 without proper marketing strategies causing a loss of Rs 51.59 crore to the organisation.

According to the latest CAG report, the Prasar Bharati paid to BCCI on a pro-rata basis Rs 79.51 crore for the telecast of matches during October -December 2004 against which it generated a revenue of Rs 69.53 crore resulting in loss of Rs 9.96 crore.

Moreover, the corporation charged very low rates from some advertisement agencies. In some cases, the advertisement rates were as low as Rs 0.08 lakh for commercial time of 10 seconds against the projected rate of Rs 0.50 lakh for the test cricket.

For ODIs, the rates charged were Rs 0.18 lakh as against the rate of Rs 1.50 lakh per 10 seconds of commercial time.

Had the rates as projected been charged, the Corporation would have generated a revenue of Rs 121.12 crore.

The favour shown by the Prasar Bharati to some advertisement agencies by charging low rates has been brought out in the Report of the Comptroller and Auditor Geeneral(CAG) for 2006.The Prasar Bharati while bidding failed to provide reasons to audit for it.

The CAG refused the buy the Corporation's argument that the projected rates were for deciding the amount to be quoted fro BCCI cricket bid for the period 2004-2008 and were not the finally approved rates and hence cannot be made the basis for calculation of loss.

The CAG pointed out that in a number of cases, the rates charged by the Prasar Bharati were as per the projected rates which shows that these rates were not redundant as claimed by it.

''In any case, while arriving at bid value Prasar Bharati must have estimated the expected revenue generation conservatively and not by taking into account unsustainable advertisment rates.'' it said.

The Prasar Bharati also explianed that it acquired the cricket rights in a piecemeal manner almost overnight and especially during weekend giving no time for a systematic and scientific marketing.

However, The CAG said the reply indicates the need for the Prasar Bharati to set right its media property acquisition and marketing strategies.

UNI

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