Cabinet Approves 3rd Batch of FM Radio Auctions for 234 New Cities

The ALF will be set at 4% of Gross Revenue, excluding Goods and Services Tax (GST), for the 234 new cities and towns.

The Union Cabinet, led by Prime Minister Narendra Modi, has given the green light for the third batch of ascending e-auctions under the Private FM Radio Phase III Policy. This initiative will auction 730 FM radio channels across 234 new cities, with an estimated reserve price of Rs. 784.87 crore.

Expansion to New Cities

This expansion will address the unmet demand for FM radio in cities and towns that have yet to be covered by private FM broadcasting. The inclusion of these new areas will introduce fresh and local content in various regional languages, catering to diverse audiences.

Annual License Fee Update

The Cabinet has also approved a new Annual License Fee (ALF) structure for FM channels. The ALF will be set at 4% of Gross Revenue, excluding Goods and Services Tax (GST), for the 234 new cities and towns.

Economic and Cultural Impact

The rollout of Private FM Radio in these new locations is expected to create numerous employment opportunities and provide a boost to local dialects and cultures. The initiative supports the 'vocal for local' campaign by promoting local content and engagement.

Focus on Aspirational and LWE Affected Areas

Many of the newly approved cities and towns are in Aspirational districts and areas affected by Left-Wing Extremism (LWE). Establishing Private FM Radio in these regions will enhance government outreach and contribute to regional development.

This move is set to significantly enhance the FM radio landscape across India, fostering greater connectivity and local representation in the media.