Government Greenlights Expansion of FM Radio with 730 New Channels

The Indian government has approved a plan to auction 730 new FM radio channels in 234 cities, aiming to extend FM radio's reach. The program, involving an estimated reserve price of Rs 784.87 crore, is expected to boost local content and languages. The transparent auction process will follow TRAI recommendations.

The Indian government, aiming to expand the reach of FM radio nationwide, on Wednesday sanctioned a proposal to conduct a third series of ascending e-auctions for 730 FM radio channels across 234 new cities. This initiative comes under the Private FM Radio Phase III Policy and carries an estimated reserve price of Rs 784.87 crore.

In a meeting chaired by Prime Minister Narendra Modi, the Union Cabinet also approved an annual license fee for FM channels set at four per cent of gross revenue, excluding GST. Modi shared that enhancing access to diverse and local content through private FM radio in 234 new locations will foster creativity and promote local languages and cultures.

Union Information and Broadcasting Minister Ashwini Vaishnaw indicated that the rollout will meet the unfulfilled demand for FM radio in these previously uncovered areas. While the government has yet to decide on allowing news broadcasts on private FM channels, it has significantly simplified the one-time non-refundable entry fee structure for FM radio entries, also addressing concerns raised by the radio industry.

The new FM channels will serve many regional areas, including several aspirational districts and Left Wing Affected areas, strengthening government outreach. Delhi, Uttar Pradesh, Andhra Pradesh, and many other states will soon welcome these channels, bringing local content to listeners in their mother tongue. This process will be carried out transparently, adhering to the best practices seen in the telecom sector, as stated by Vaishnaw. Currently, there are 388 FM radio stations in 113 cities across 26 states and five Union Territories.

(With inputs from agencies.)