NEW DELHI: The Centre on Wednesday has approved the proposal for conducting e-auctions for 730 FM private radio channels for 234 new cities with an estimated reserve price of Rs 784.87 crore under the FM Radio Phase III policy.
The decision was taken in the Cabinet meeting chaired by Prime Minister Narendra Modi. Many of the approved cities or towns are in Aspirational districts and Left Wing Extremism (LWE) affected areas.
Setting up Private FM Radio in these areas will further strengthen Government outreach in these areas, said the Government.
Last week, this newspaper reported that the Ministry of Information and Broadcasting (MI&B) was preparing to expand the reach of FM radios by auctioning private FM channels in various cities under Phase III. Officials had stated that the ministry would soon develop an optimal auction plan, considering both the availability of FM channels and the competitive landscape.
The Cabinet also approved the proposal to charge Annual License Fee (ALF) of FM channels as 4 per cent of Gross Revenue excluding Goods and Services Tax (GST). This will be applicable for 234 new cities or towns.
“The Private FM Radio rollout in 234 new cities/ towns will fulfil the unmet demand for FM radio in these cities/ towns, which still remains uncovered by Private FM radio broadcasting and bring new or local content in mother tongue. It will lead to the creation of new employment opportunities, boost to local dialect and culture and ‘vocal for local’ initiatives,” read a statement of the Government.
To facilitate the auction process, the ministry will engage an agency responsible for providing all incidental services until the successful bidders are selected. This agency 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.