Under attack from Indian broadcasters, the government has sought a series of explanations from Star TV on its application for uplinking its 24-hour news channel -- Star News -- from India even as it decided to revise the guidelines to ensure stricter compliance to the 26 per cent foreign equity cap.

A day after Indian broadcasters alleged violations by foreign channels, the matter was discussed at a high-level meeting at Prime Minister Atal Bihari Vajpayee's residence on Saturday.

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It was decided that consultations will be held among the ministries of information and broadcasing, law, company affairs and if necessary the finance ministry also to revise guidelines to ensure strict compliance of the foreign equity clause by foreign channels "in letter and spirit".

"The second decision taken is to work out a structure, which offers a level-playing field which is non-discriminatory to television channels in the tax structure," Information and Broadcasting Minister Ravi Shankar Prasad told reporters.

Besides Vajpayee, the meeting was attended by Deputy Prime Minister L K Advani, Finance Minister Jaswant Singh, External Affairs Minister Yashwant Sinha, Law Minister Arun Jaitley, National Security Advisor Brajesh Mishra, Prasad and his ministry officials.

The government has sought to know as to how the Media Content and Communications Services India Ltd floated by Star TV to meet the guidelines could make huge payments running into crores of rupees from a meagre capital base of Rs 100,000 and also why shareholders other than those of Star do not have adequate representation on the board of directors.

Prasad said a query has been sent to Star on a "whole range" of issues and a decision on Star News will be taken in the light of its reply but gave no deadline for it.

He was answering a question on whether Star News, which has been given a weekly extension thrice, would get further permission to continue in its present format.

About reports that Kumaramangalam Birla has divested his stake in MCCS, floated after Star offloaded 74 per cent stake in news operations to resident Indians, Prasad said, "We have asked officials to get it verified."

If true, the composition of Star's application will change and the broadcaster may have to apply afresh.

However, he made it clear that the quantum of equity cap will remain at 26 per cent, as stipulated in the guidelines.

The ministry has asked Star to explain its shareholding pattern in view of Star India remaining the major shareholder with 26 per cent while others "do not appear" to have adequate representation on the board.  

The other details sought by the government:

• Details on division of shares,
• How two shareholding companies were investing Rs 50 lakh (Rs 5 million) when their paid up capital was Rs 100,000,
• Projected turnover in the next five years and source for funding it,
• Funds flow statement for last year and the next five years,
• Loans proposed to be taken and from where,
• Details of VSATs and other equipment and number of offices.

The government also wants to know who will own it when the proposed investments are made and also the number of staff to be employed -- both Indian and foreign.