In With the government having developed the clear guidelines for the FM Radio Phase III expansion, the decks have now been cleared for allowing private radio channels to broadcast news. There could be revenue generation to the tune of Rs 1,733 crore from the auction of licence for services in 227 cities.
While briefing the media after the cabinet meeting, the I&B minister, Ambika Soni said, New licences will be given through e-auction that will be conducted by an independent expert agency. The Union Cabinet has also decided to raise the FDI (Foreign Direct Investment) and FII (Foreign Institutional Investment) limits in the FM business to 26 per cent from 20 per cent.
The new policy from the government envisages extending of FM radio services to about 227 new cities. In all, 839 new FM radio channels will be offered in 294 cities. The main participants in the new round of auctions for FM licences is expected to include companies like ENIL (Times Group), HT Media, Jagran, Bhaskar, Mid Day, DB Corp and Sun Network.
Shares of broadcasting firms listed on the stock exchanges have surged from 1 to 15 per cent following the announcement.
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