The information technology department will ask the finance ministry not to extend beyond July 31 the duty holiday announced on set-top box imports.

The government had earlier this month cut the effective duty on set-top boxes from 50.8 per cent to 5 per cent to ensure their easy availability in the country prior to the implementation of the conditional access system from July 15.

This decision was taken at a meeting of the information technology department, the information and broadcasting ministry and local set-top box manufacturers. It was chaired by Infotech secretary R R Shah.

The move is expected to help the domestic hardware and electronics industry benefit from the business opportunity offered by the CAS rollout and promote the manufacture of set-top boxes locally.

At the meeting, it was decided that a comprehensive national policy on set-top boxes would be prepared, sources said. The participants at the meeting felt such a policy should be worked out alongside the Cable Television Amendment Act to ensure the smooth rollout of CAS, they added.

"We feel the reduction of duties has nullified the advantage enjoyed by domestic manufacturers. We think the lost opportunity can be made up by working out a proactive policy to promote the domestic industry," a senior information and broadcasting ministry official said.

A proactive policy will help the domestic industry tap the opportunity presented by the rollout of the CAS in the rest of the country. In the initial phase, the CAS will be introduced in the four metros, which have a total of about 5 million cable homes.

"It is estimated that there are another 39 million cable homes in the country, which are potential customers for set-top boxes. The policy should be aimed at encouraging the domestic manufacturers to tap this market," the official said.

At the meeting, it was also decided to ask the information and broadcasting ministry to promote set-top boxes with open architecture.

Domestic help

• Finance ministry will be asked not to extend beyond July 31 the duty holiday announced on set-top box imports.
• A comprehensive national policy on set-top boxes will be prepared.
• The domestic industry missed the opportunity presented by initial phase of the CAS rollout due to the duty reduction.