Cabinet approval for e-auction of 730 FM channels in 234 cities

New Delhi, August 28

The Union Cabinet on Wednesday cleared a proposal to conduct the third batch of e-auction of 730 FM channels across 234 tier II and III cities with estimated reserve price of ~784.87 crore under the private FM radio phase-III policy.

These include nine cities each of Punjab and Haryana and Anantnag town of J&K. The Cabinet also approved the proposal to charge annual licence fee (ALF) of FM channel as 4 per cent of Gross Revenue, excluding GST. This will be applicable for 234 new cities and towns.

The private FM radio rollout in 234 new cities and towns will fulfil the unmet demand for FM radio in these places as they remain uncovered by private FM radio broadcasting and will also bring new and local content in their mother tongue. It will also lead to creation of new employment opportunities and boost local dialect and culture.

Most of the approved cities are in aspirational districts and LWE-affected areas. Setting up of private FM radio in these areas will further strengthen the government outreach.