The Walt Disney Company, the second largest entertainment firm in the world after AOL-Time Warner, has renewed plans to set up an independent company in the country and start its own channel - The Walt Disney channel.

Walt Disney recently snapped ties with the KK Modi group. The two companies agreed to dissolve the 50:50 joint venture in August this year after the expiry of the 10-year license agreement.

The new company, The Walt Disney Co (India), will operate entertainment channels as well as engage in licensing of Walt Disney products and characters in the country.

Although details of the new proposal are not available, industry sources said the company would bring The Walt Disney channel to the country in the first phase, and then gradually roll out other businesses.

As per an earlier proposal, Walt Disney planned to start an Indian arm with an initial capital of $30 million.

The company hoped to use the arm to develop other Disney businesses in India, including theme parks and resorts.

It may be recalled that Walt Disney entered into a 10-year joint venture agreement with the Modis in 1993.

However, the relationship soured in October 2001, when Disney sought government permission to set up a wholly-owned subsidiary for the launch of The Disney Channel in India.

The Modis refused to give a no-objection certificate to the venture on grounds that the proposed wholly owned subsidiary would directly compete with the existing joint venture company.