Union Cabinet Approves Expansion of Private FM Radio to 234 New Cities

The Union Cabinet, led by PM Modi, has approved the rollout of private FM radio to 234 previously uncovered cities or towns, with an e-auction for 730 channels at a reserve price of Rs 784.87 crore. The policy includes a new annual licensing fee and promises cultural and economic benefits.

The Union Cabinet on Wednesday sanctioned the rollout of private FM radio to 234 cities or towns that have so far remained without this service. The plan, headed by Prime Minister Narendra Modi, includes e-auctions for 730 channels in these new locations, with a reserve price estimated at Rs 784.87 crore under the Private FM Radio Phase III Policy.

The approval also introduces an Annual License Fee (ALF) set at 4% of gross revenue, excluding GST, applicable to the newly covered cities and towns. According to an official release, the expansion will address unmet demands for FM radio services and usher in fresh, localized content in native languages.

The move is expected to generate new job opportunities, boost local dialects and cultures, and support 'vocal for local' initiatives. Notably, many of the newly approved locations are in aspirational districts and areas impacted by Left Wing Extremism. Establishing private FM radio in these regions will enhance public outreach and engagement, the release noted.

(With inputs from agencies.)