In a significant move aimed at expanding the reach of private FM radio across the country, the Union Cabinet, chaired by Prime Minister, Narendra Modi, has given the green light for the conduct of the third batch of ascending e-auctions. The auction will cover 730 private FM radio channels across 234 new cities, with an estimated reserve price of Rs. 784.87 crore. This decision comes under the ambit of the Private FM Radio Phase III Policy.
The auction will include cities and towns from across various states, addressing the persistent demand for FM radio services in regions that have remained uncovered by private broadcasters. The state-wise list of approved cities and the number of channels per city will be released shortly, providing a comprehensive overview of the regions set to benefit from this expansion.
Annual License Fee Set at 4% of Gross Revenue
In a related decision, the Cabinet also approved a proposal to charge an Annual License Fee (ALF) for FM channels at 4% of Gross Revenue, excluding Goods and Services Tax (GST). This fee structure will apply to all 234 new cities and towns where private FM radio will be introduced, ensuring a fair and transparent financial model for operators.
Boost to Local Content and Employment
The rollout of private FM radio in these new areas is expected to have a transformative impact. It will fulfill the unmet demand for FM radio services, bringing diverse and localized content in regional languages to the forefront. The initiative is also seen as a significant push towards the ‘vocal for local’ campaign, promoting local dialects, culture, and talent.
Focus on Aspirational Districts and LWE Areas
Notably, many of the approved cities and towns are located in Aspirational Districts and Left-Wing Extremism (LWE) affected areas. The introduction of private FM radio in these regions is anticipated to enhance government outreach, fostering better communication and engagement with local populations. The initiative is also poised to create new employment opportunities, providing a much-needed economic boost in these areas.
Government’s Vision for Expanding FM Radio This decision marks a continued commitment by the government to extend the reach of FM radio, which remains a popular medium for entertainment and information in India. The Cabinet’s approval is expected to accelerate the deployment of private FM radio services, ensuring that more citizens, especially in underserved and remote areas, have access to quality radio broadcasting.
