New Delhi, Aug 28 (PTI) Seeking to expand the reach of FM radio, the government on Wednesday approved a proposal to hold a third batch of ascending e-auctions for 730 channels in 234 new cities with an estimated reserve price of Rs 784.87 crore under Private FM Radio Phase III Policy.
The Union Cabinet, at a meeting chaired by Prime Minister Narendra Modi, also approved a proposal to charge an annual license fee (ALF) of FM channel as four per cent of gross revenue excluding GST.
“The Cabinet decision on the rollout of Private FM Radio to 234 cities and towns will enhance access to diverse and local content, thus encouraging creativity and encouraging local languages as well as cultures,” Prime Minister Modi said in a post on X.
Union Information and Broadcasting Minister Ashwini Vaishnaw said the private FM radio roll out in 234 new cities and towns will fulfill the unmet demand for FM radio in these areas which still remain uncovered by private FM radio broadcasting.
Vaishnaw also said that the government was yet to take a decision on allowing news broadcasts on private FM channels.
“When those reforms take place, we will present it before you,” he said to questions on allowing news broadcast on private FM channels.
Vaishnaw said the Union Cabinet has also approved a major simplification of the one-time non-refundable entry fee charged from FM radio channels.
Some of the issues flagged by the radio industry on improving financial health of radio channels have also been approved by the cabinet.
The 234 cities to be covered by FM Radio channels, include 32 in Uttar Pradesh, followed by Andhra Pradesh (22), Madhya Pradesh (20), Rajasthan (19), Bihar (18), Karnataka (16), West Bengal (13), 11 each in Maharashtra and Tamil Nadu, and 10 in Telangana.
The new FM channels will bring local content in mother tongue to listeners in the respective regions.
Many of the approved towns are in aspirational districts and the Left Wing Affected areas.
Setting up of private FM radio in these areas will further strengthen the government outreach in these areas, the statement said.
Vaishnaw said the FM radio channels will be auctioned in a very transparent manner.
“We are adopting the best practices that we have seen in the telecom sector. We will be using the same process very transparently. TRAI is the broadcast regulator and it has made some recommendations regarding the auction process, so it will be done as per that process,” he said.
The Ministry of Information and Broadcasting has invited proposals from the companies to facilitate the auction process.
The ministry company will be responsible for providing all incidental services until the successful bidders are selected. This firm will also work to generate market interest and excitement about the auction in India.
Currently, there are 388 FM radio stations in 113 cities across 26 states and five Union Territories. PTI SKU NAB AS AS
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