Prasar Bharati flags Rs 4,318 cr in spectrum dues and Rs 933 cr in loan liabilities

Prasar Bharati’s FY24 financial statements reveal a substantial build-up of liabilities and contingent exposures linked to spectrum charges and legacy loans, even as the public broadcaster reported an improvement in its surplus position.

The annual report discloses a contingent liability of ₹4,318 crore on account of interest and late fees related to spectrum and space segment charges. These dues have been recognised on an estimated basis but remain unsettled, forming a significant off-balance sheet exposure.

In addition to this, Prasar Bharati has made a provision of ₹1,913 crore toward spectrum and space segment charges in its books, reflecting liabilities that are recognised but not yet fully resolved.

On the balance sheet, the broadcaster continues to carry loan liabilities of ₹933 crore, comprising ₹770 crore of dues and an additional ₹162.92 crore related to an interest-free loan taken for Commonwealth Games broadcast infrastructure.

Interest obligations on these loans have accumulated over time. The report notes interest of ₹1,277 crore and penal interest of ₹310 crore, indicating the extent of financial burden associated with these legacy borrowings.

A key development flagged in the report is a Cabinet decision communicated in June 2018 to convert certain outstanding loans for the period April 2010 to March 2013 into grants-in-aid and to waive the associated interest and penal interest.

However, the document states that this decision has not yet been implemented, and the broadcaster continues to account for the related liabilities.

The impact of these obligations comes into focus when seen alongside Prasar Bharati’s reported financial position. The broadcaster posted a cumulative surplus of ₹602 crore and a corpus fund of about ₹812 crore as of March 31, 2024.

At the same time, current liabilities and provisions stood at over ₹5,033 crore, indicating the scale of obligations on its books.

The report also highlights ₹475 crore in disputed amounts tied to arbitration and court cases, pointing to ongoing legal and financial uncertainties.

Despite these liabilities, Prasar Bharati reported total income of ₹5,043.6 crore in FY24 and an operational surplus of ₹184 crore, supported by a combination of government grants and internal revenue streams.

The disclosures indicate that while the broadcaster’s financial performance has improved in terms of revenue and surplus generation, it continues to carry significant legacy obligations related to spectrum charges and loans, alongside contingent exposures that remain to be resolved.