730 private FM radio channels will be opened in 234 cities, government has approved the auction proposal…

New Delhi. With an aim to promote the expansion of FM radio in the country, the Union Cabinet has approved the proposal to conduct ascending bid e-auction for 730 FM radio channels at 234 locations.

A proposal to this effect was approved in the Union Cabinet meeting held on Wednesday under the chairmanship of Prime Minister Narendra Modi. Union Information and Broadcasting Minister Ashwini Vaishnav told in a press conference after the meeting that this approval has been given under the third phase policy of private FM radio. In this phase, it is proposed to conduct the maximum e-auction of the estimated reserve price of Rs 784.87 crore.

He said that in earlier phases, FM radio channels were established in many cities across the country, but now it will be expanded on an even wider scale. Under this scheme, the reach of FM radio channels will be promoted in small and medium-sized cities, which will make the dissemination of information and entertainment more effective in these areas. The e-auction process has been chosen to ensure transparency and competition, so that eligible applicants can easily participate.

The Cabinet also approved a proposal to levy annual licence fee for FM channels at 4 per cent of gross revenue excluding GST. This will be applicable in 234 new cities and towns. This will encourage the production of local programmes in different languages, especially mother tongues. Under this arrangement, new FM radio channels will be opened in Uttar Pradesh, the highest number of 32 cities, followed by Andhra Pradesh with 22 cities/towns. 20 channels have been allotted to Madhya Pradesh, 19 to Rajasthan, 18 to Bihar and three to Anantnag in Jammu and Kashmir.

It is being said that this scheme will not only boost the media and entertainment industry, but it will also help in promoting local languages ​​and cultures. Along with this, new employment opportunities will also be created through new FM radio channels.