It is Sudhir Chaudhary’s own company – Essprit Productions Pvt Ltd – that is in talks with Prasar Bharati for a show on DD News at a cost of Rs 15 crore per annum plus GST, Newslaundry has learnt.
According to an internal memo about the Prasar Bharati board agenda dated March 11, Essprit Productions Pvt Ltd will produce a one-hour show that will be aired five days a week, or make 260 episodes in a year, if the deal receives final approval from the board.
The firm is expected to provide research, production and scripting support to the anchor for the show from DD News studios. A separate tender has been floated for renovation work on the tenth floor at the broadcaster’s office at a cost of around Rs 9.25 lakh.
Newslaundry had earlier reported that the Aaj Tak consulting editor was likely to be on a show on DD News and that the tenth floor of the channel’s office was being renovated to produce this show.
On board’s agenda
As per the memo dated March 11, there was a proposal for the Prasar Bharati board to approve the deal, certain exemptions, and the processing of a separate marketing and sales clause. Newslaundry could not confirm whether the board has granted final approval.
The deal made several exemptions despite Prasar Bharati’s legal section pointing out that many clauses were not in line with the broadcaster’s Content Sourcing Policy, 2024. These exemptions were earlier approved by the management committee.
The Prasar Bharati board was requested to approve the deal on nomination basis under clauses 3 and 4 of Rule 194 of the general financial rules 2017. Clause 3 points to “situations where execution of the assignment may involve use of proprietary techniques or only one consultant has requisite expertise”. Clause 4 says that “under some special circumstances, it may become necessary to select a particular consultant where adequate justification is available for such single-source selection in the context of the overall interest of the ministry or department. Full justification for single source selection should be recorded in the file and approval of the competent authority obtained before resorting to such single-source selection.”
Newslaundry reached out to Prasar Bharati chairman Navneet Sehgal and Sudhir Chaudhary for comment. This report will be updated if a response is received.
How was Chaudhary selected?
The internal memo suggested that a Prasar Bharati board meeting had approved the engagement of two leading news anchors and a production agency for a “strategic leap” by DD News in light of its recent revamp.
A search-and-selection committee chaired by board member Ashok Tandon subsequently chose one anchor, Sudhir Chaudhary, for the time being as leading market players “may not participate in the regular NIA-based process and tendering formalities”. The committee had taken into account “the proven credibility, TRP track records and strong social media presence” of Chaudhary.
The management committee, in its 239th meeting, approved a negotiation committee under the chairmanship of AIR additional director general L Madhu Nag. This panel was reconstituted at the 244th meeting under the chairmanship of TMSO additional director general Ved Prakash as Nag “expressed his inability to chair the negotiation committee due to him not being in touch with TV news production for over a decade”.
The Prakash-led panel negotiated with Essprit Productions in five different meetings between February 6 and February 20 this year, according to the internal memo.
After discussions on the production and infrastructure costs, both parties agreed on the cost of Rs 15 crore per annum plus GST, which was within the figure of Rs 28.6 crore plus tax as per CBC approved rates dated May 24, 2012.
Essprit Productions Pvt Ltd is based in Delhi’s Vasant Kunj and was floated in July, 2024 with Chaudhary and Rattan Lal as directors.
Legal section raised concerns
The 244th meeting of the management committee also approved exemptions in content sourcing policy, 2024, in the programme production and broadcasting agreement. Newslaundry could not confirm whether a final approval was granted to all these clearances by the Prasar Bharati board as well.
It was suggested that a separate marketing and sales agreement may be negotiated and signed between the two parties in light of clause 8 of the deal pertaining to intellectual property. This clause says the company assigns the channel the entire copyright provided it is granted a worldwide, fully paid-up, royalty-free, non-sublicensable license to use the intellectual property for the term of the agreement and any other related rights.
The broadcaster’s legal section had earlier flagged that certain clauses of the agreement were at variance with the provisions of the Content Sourcing Policy, 2024, and that these variances needed approval of the management committee – which eventually granted approval.
These exemptions included the payment of monthly fee by DD News and adjustment of advance payment, as against clause 2.6(a) of CSP, 2024 which allows for payment in tranches and adjustment of advance in the end.
They also include changes to the termination clause by suggesting a six-month notice period as against the one-month period stipulated under the CSP. Exemption was also granted for display of wardrobe credits by the production company.
If the production crew is required to travel for the show, the channel will arrange business class tickets and five-star hotel accommodation for Sudhir Chaudhary and appropriate arrangements for other team members as per their designation.
The management committee also approved a clause which says the said yearly contract value shall be subject to an escalation at the rate of 10 percent every year.
Chaudhary was the face of Zee News for about a decade. He joined Aaj Tak in June 2022, less than two weeks after he quit Zee News.
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