The lack of standardisation of entertainment tax as applied in various parts of the country has been a sore point for a long time now. This looks set to change if information and broadcasting minister Sushma Swaraj is to be believed.

"The government is keen to bring about a rationalisation of entertainment tax," Swaraj told the Economic Times on Friday.

If what she says comes true it will be welcomed with relief in the film industry especially which has been asking for precisely this for a number of years now. Entertainment tax ranges from around 14 per cent to more than 100 per depending on the state. In India, entertainment tax is a state subject which is why rates vary from state to state.

Swaraj said the issue would be high on the agenda of the state information ministers conference being held in the capital on Sunday. Swaraj said the Central government would try to bring about a consensus among states for putting in place a ceiling for entertainment tax.

While cinema has been at the centre of the debate about entertainment tax, the cable industry would be also very interested in the developments because they have also been raising similar arguments.

Cable operators have been up in arms in the western state of Maharashtra for a year now following the doubling of entertainment tax there to 30 per cent last year.

The Big Daddy is putting together its plans for direct-to-home (DTH) television and other aspirants can either try to beat them or join them.

The Hindustan Times reported on Saturday that Videsh Sanchar Nigam Ltd (VSNL) intends to be the first company in India to enter this segment with an investment in excess of Rs 2.5 billion. The proposal will be put up before the company board on 22 January for in-principle approval and VSNL hopes to be ready with a platform by July this year, the report says. VSNL?s plans are very significant as a number of players like the C. Sivasankaran-run Sterling group in partnership with Zee TV, Jain TV, DD, Modi Entertainment Network and B4U have all announced that they would either invest in or set up DTH platforms themselves.

If VSNL achieves first to market advantage, it will be in a position to offer services to these companies. VSNL chairman and managing director SK Gupta did not comment on whether any tie-ups were in the offing, but hinted that he had an open mind on the issue.

A real possibility though would be an alliance with Star TV. It appears to be the only private player seriously putting together any plans to start DTH operations. According to published reports Star is willing to put in up to $ 500 million in its DTH project taking on as many as three to four partners. Star is believed to be ready to form some sort of association with VSNL if it makes business sense.