Union Cabinet Approves Third Batch of FM Radio e-Auctions in 234 New Cities

The Union Cabinet has greenlit the third batch of ascending e-auctions for 730 channels in 234 new cities under the Private FM Radio Phase III Policy. The estimated reserve price is Rs 784.87 crore, and a new annual license fee structure has been proposed. This initiative aims to fulfill the demand for FM radio, create employment, and promote local culture.

The Union Cabinet on Wednesday gave the green light for the third batch of ascending e-auctions encompassing 730 channels across 234 new cities under the Private FM Radio Phase III Policy.

The projected reserve price stands at Rs 784.87 crore. Union Information and Broadcasting Minister Ashwini Vaishnaw informed that an annual license fee, equivalent to four percent of gross revenue excluding GST, will be levied on FM channels in these new areas.

The expansion of private FM radio to these 234 cities addresses the existing gap in FM radio coverage, introducing local content in native languages. This move is expected to spur job creation, enhance local dialects and culture, and support 'vocal for local' initiatives. Notably, many of the new towns are situated in aspirational districts and areas affected by left-wing extremism, thus reinforcing government outreach efforts.

(With inputs from agencies.)