NEW DELHI: The Ministry of Information and Broadcasting (MI&B) is preparing to expand the reach of FM radios by auctioning private FM channels in various cities under Phase III. The exact number of channels to be auctioned will be determined by the ministry. Officials stated that the ministry will soon develop an optimal auction plan, considering both the availability of FM channels and the competitive landscape.
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.
The permission for private FM radio channels is granted through an e-auction process similar to the one used by the Department of Telecommunications. Currently, there are 388 FM radio stations in 113 cities across 26 states and five Union Territories.
Last year, former Union Minister for Information and Broadcasting Anurag Singh Thakur announced plans to auction off 808 channels in 284 cities under the third batch of e-auction. The selected agency for the auction will ensure a transparent and fair process, aiming to optimize revenue and promote equitable growth of FM radio.
The e-auction for the first batch of private FM radio channels under Phase III began in August 2015. In October 2022, the Centre approved amendments to policy guidelines for FM radio expansion, removing the three-year window period for restructuring FM radio permissions within the same management group during the 15-year license period. This change is intended to facilitate further expansion in smaller cities.
Additionally, the amendments simplified financial eligibility norms, allowing companies with a net worth of Rs 1 crore to participate in the bidding process for category ‘C’ and ‘D’ cities. Previously, the mandatory net worth required was Rs 1.5 crore.