UTV is among the several media companies Star India Ltd is talking to for collaborating on the launch of its Hindi news channel in India. Industry sources say UTV is a serious contender for the post.

Rupert Murdoch's News Corporation has a 15 per cent stake in UTV, which is promoted by Ronnie Screwvala. Besides, UTV and Star are joint-venture partners in Vijay TV.

However, Star is said to be talking to Rajat Sharma's Independent Media Private Ltd and Jain TV as well.

Sources within Star say Sharma could be one of the content providers for the news channel. Ankur Jain, head of Jain TV, said he had received no proposal from Star.

Replying to a Business Standard questionnaire on the proposed tie-up, Star News president Ravina Raj Kohli said: "We do not comment on speculation. We have no plans to tie up with Rajat Sharma."

Kohli added that the launch of its news channel would not be deferred. "We are waiting for the guidelines from the ministry," she said.

She refused to comment on whether Star News would continue its point-to-point uplink to Hong Kong via Videsh Sanchar Nigam Ltd.

"We cannot reveal our immediate plans. Star News has been on air for five years and it will continue to provide quality and credible news to Indian audiences," Kohli said.

Media experts say Star may not be allowed to use the link to Hong Kong through VSNL and package its news there, since the new foreign investment guidelines do not permit it.

The information and broadcasting ministry is said to have "instructed" the communications ministry, which gives the permission for point-to-point links via VSNL, not to allow companies with over 26 per cent foreign investment to use the service.

Announcing the new foreign investment caps for news channels a couple of days ago, Parliamentary Affairs Minister Sushma Swaraj had said if the communications ministry did not follow the new guidelines, the purpose behind the cap would be defeated.