Cabinet authorizes bringing out private FM radio in 234 untapped cities

The Union Cabinet accepted a proposal on Wednesday to hold the third round of escalating e-auctions for 730 channels in 234 new cities under the Private FM Radio Phase III Policy. The projected reserve price has been set at Rs 784.87 crore.

Union Information and Broadcasting Minister Ashwini Vaishnaw said today that the Cabinet also accepted a proposal to collect an annual license fee (ALF) of 4% of FM station gross revenue excluding GST. This will be applicable to 234 new cities and municipalities.

According to an official release, the rollout of private FM radio in 234 new cities and towns will meet the unmet demand for FM radio in these places that have yet to be served by private FM radio broadcasting while also bringing new and local programming in mother language.

It would result in the establishment of new job possibilities, a boost to local dialect and culture, and 'voice for local' activities, it added. Many of the authorized towns are in aspirational districts or Left Wing Affected areas.

The establishment of private FM radio stations in these locations will boost government outreach in these areas, according to the statement.