The deal was signed in Mumbai recently. The tie-up will help build synergy for both the Hindi television major and the new born Indiavision TV.The Rs 80-crore Indiavision TV is a newly floated television company promoted by a group of non-resident Indians. The company, which is yet to be incorporated, is being led by MK Muneer, son of the former Kerala chief minister late CH Muhammod Koya. Muneer is also a member of the Kerala legislative assembly.

Company insiders told The Financial Express that the promoters of the Indiavision television company were planning to raise the required Rs 80-crore for financing the project through both by private placement and book building route with NRIs and local investors as target group. The private placement has a minimum cap of Rs 1 lakh and an upper limit of Rs 8 crore. Already, a number of NRIs and local investors have evinced keen interest in investing in the venture, sources said.

"Scores of leading Kerala-based NRIs have agreed to pick up stake in the venture. Talks are on with many potential investors and a decision will be reached soon", a company insider on conditions of anonymity said.

The exact nature of the Sony TV's tie-up with Indiavision is not immediately known. However, it is learnt that the teaming up is based on the current market realities and essentially of technology transfer, software sharing and advertisement revenue division nature. "It is too premature to say whether Sony will pick up an equity stake in the Indiavision venture", the source said. However, he admitted that programme and advertisement sharing are part of the deal.

Indiavision is planning to beam its Malayalam channel by September. "We are planning to air the Malayalam channel as an Onam gift", the source said adding the date for airing the Kannada channel is yet to be finalised.With the entry of new players, the skies of Kerala are set to witness a battle royale. Already, the Raji Menon-promoted Asianet News and Surya TV, a wholly owned subsidiary of the Tamil TV major Sun TV, are waging a pitched battle for supremacy in Kerala market. A third channel promoted by a political party is all set to go on air in May. At least two other groups, the Thrissur-based Jeevan TV and the Kochi-based Vikasavani, are waiting to go on air. Karnnataka has only one vernacular channel - Udaya TV from the stable of Sun TV, promoted by the Marans.

The tie-up make good business sense for both the companies, industry sources pointed out. Sony can add two more to its bouquet of channels without much financial commitment and effort. Sony had earlier announced its plans to launch a 24-hour English news channels besides launching separate channels in Malayalam and Kannada.