Update: After following up almost every day with the AP technical lead, I got a call from him today. He said this issue is now pending with the broadcasting team for almost 10 days. Even they are waiting to hear from them as to what solution they will provide. However, he said personally he thinks that the issue will be closed saying "Individual problem" because there are no other complaints received on this. The broadcasting team may not change the broadcasting parameters for a single issue. I told him, I'm not the only one facing this issue everyone is facing the same issue on regional HD channels. However, I understood what he is trying to convey. Basically these are huge decisions taken at highest management level on what to compress and what not to.
He mentioned (Unofficially) looks like regional HD channels are given least priority and are compressed highly. But still they are waiting to hear that from the broadcasting team. If these parameters need to be changed, there should be lot of pressure from many customers and one customer complaint may not be enough and also it's a time consuming process and could potentially take many weeks. However, he assured me that he will continue working on this and will let me know the progress. The issue is still open. He also said, he will send a senior manager from the field team to my home to note down all the parameters that the broadcasting team might ask for. I asked him for a timeline on the issue, he couldn't commit anything.
I will continue to work with them. However, IMHO at this point it is clear that the issue will take very long time to get resolved. If regional HD channels PQ is the priority, one needs to wait for Airtel to add the remaining ones and switch (Looks like a better option). Or switch to Sun Direct HD, if the sound quality is not a problem. This is my opinion.