Posted: Thurs., Mar. 27, 2003, 3:59pm PT

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Star looking to localize in India

Co. must find a domestic partner to directly uplink

NEW DELHI -- Rupert Murdoch's Star Television India has been given three months to comply with the new 26% foreign ownership cap on news channels, allowing it to continue plans to launch a stand-alone 24-hour news service on April 1.

The Government, announcing the reprieve on Wednesday, nixed Hong Kong-based Star's plans to take a 49% stake in Star News. It now must look for a domestic partner, which will also allow it to directly uplink from India. Only local companies have that right under the new policy, crucial for news channels that need instant coverage of events.

"Star welcomes the guideline and will comply with the new norms," said Star India's news channel director, Ravina Raj Kohli.

"Star News will undergo a seamless transition to a 24-hour Hindu language news service from March 31, when the contract with our content supplier ends."

Star's present coverage is produced by New Delhi Television and then sent electronically to Hong Kong where it is uplinked and transmitted via satellite back to India.

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