In relief to print media, Gujarat government clears dues till March

MUMBAI: India’s newspaper industry, which is bearing monthly losses in excess of Rs 2,000 crore due to the Covid-19 pandemic, got some support in Gujarat after the state government, following chief minister Vijay Rupani’s intervention, cleared the print media’s dues until March.

Talking to a media house, Rupani said that his government would clear the pending payments owed for all government advertisements published until April if the state’s cash flows remained stable.


Rupani told the media outlet that newspapers were the biggest and best source of true, accurate, and credible information.

“Keeping people away from fake news and presenting the true picture is the need of the hour. The government believes it is crucial to support newspapers during such adverse times,” Rupani said.

The move will provide some breathing space to print-media outlets, which have lost about ?4,500 crore in March and April.

The newspaper industry, directly and indirectly, employs about 3 million people.

Media pundits believe that the BJP-led state government’s move is a positive sign for the industry, and that the central government, led by Prime Minister Narendra Modi, will likely take a similar call soon.

The central government and various departments owe Rs 1,500-1,800 crore to the Indian media industry, out of which the dues to the print industry alone amount to Rs 800 crore.

Last week, Prakash Javadaker, minister for Information and broadcasting, told a high-level delegation of the Indian Broadcasting Foundation (IBF) that the government is speeding up the payment process and that about ?135 crore has already been released to media companies.

The print media industry has been severely affected by the pandemic and the Indian Newspaper Society (INS), which represents more than 800 newspapers, has said that the losses are expected to continue at the same rate for the next six-seven months, implying an additional loss of ?12,000-15,000 crore, unless a robust stimulus package is put into action.

Newspapers have been hit hard due to disruptions in the supply chain, a sharp drop in advertising, and also an imposition of 5% customs duty on newsprint.

All these factors have led to a situation where many small and medium newspapers have already suspended publishing, while others have reduced pages drastically, creating an existential crisis for many smaller players in one of the last vibrant newspaper markets in the world.

Over the past few weeks, there have been repeated pleas from the stakeholders urging the government to urgently release the pending payments of the Bureau of Outreach and Communication (BOC, erstwhile DAVP).