THE MINISTER OF STATE IN THE MINISTRY OF INFORMATION & BROADCASTING (SHRI C.M. JATUA)
(a) & (b): Cabinet, in its meeting held on 7.7.2011, has approved the ‘Policy Guidelines
on Expansion of FM radio broadcasting services through private agencies (Phase-III)’. For
promotion of private FM radio, policy proposes to enhance FDI+FII from 20% to 26%, news
bulletins of All India Radio (AIR) in an unaltered form has been permitted, networking of
channels within a broadcaster’s channel has been allowed and multiple channels in a city has
also been permitted. Policy also proposes special incentives for North Eastern States,
Jammu and Kashmir and Island territories.
Salient features of the approved policy for Phase-III as against Phase-II are enclosed at
Annexure I.
(c): Private Sector:
Presently, 245 FM channels are operational under existing Phase-II Policy guidelines on
expansion of FM radio broadcasting services through private agencies. Further, as per appro
ved policy guidelines on expansion of FM radio broadcasting services through private agencies
in Phase-III, Government proposes to extend FM radio service to about 227 new cities, in
addition to the present 86 cities, with a total of 839 new private FM radio channels in 294
cities. Phase-III policy will result in coverage of all cities with a population of one
lakh and above except private FM radio channels in North Eastern States, Jammu & Kashmir
(J&K) and Island territories, which are having a population of less than 1 lakh.
Public Sector :
Presently, All India Radio (AIR) FM services is provided from 218 places across the country
and the coverage in FM mode is by 41.43% of population of the country. For covering the
entire country by FM channels, huge funds are required. Therefore, FM expansion in the cou
ntry is being taken up in the phased manner depending upon availability of funds, and inter
-se priority.
(d): Private Sector:
As per time schedule for implementation of Policy Guidelines on expansion of FM radio
broadcasting through private agencies, (Phase-III) , ascending e-auction process is to be
initiated for issuing permissions for FM radio channels in batches over a period of 3 years
with the approval of Hon’ble Minister in the Ministry of Information and Broadcasting. State
-wise and location/city - wise list of private channels of Phase II and Phase III are at
Annexure II and Annexure III respectively.
Public Sector:
As regards AIR, during the 11th Plan, the target for setting up of 311 new FM Transmitters of
various capacities in the country was made and their current status is as below :
S.No. 11th Plan No. of New FM Transmitters Transmitters Pending due to Scheme Transmitters installed in Progress non-allotment approved till March’2012 of Site from State Govts.
1 Continuing 173 126 41 6 Scheme
2 New Scheme 138 3 135 - (Transmitters. ordered for 115 places)
The state-wise and location-wise details are given in Annexure IV & V.
(e): Private Sector:
As per the Policy Guidelines for expansion of FM Radio broadcasting services through private
agencies (Phase-III), 4 private FM radio channels are proposed in Bhavanagar (Gujarat).
As per the policy, all the channels in Phase-III in the country, including those of Bhavan
agar would be auctioned through ascending e-auction process in batches over a period of
3 years, with the approval of Hon’ble Minister in the Ministry of Information & Broadcasting.
Public Sector:
The 100 watt FM (relay) at Bhavanagar in Gujarat is likely to be made functional by August
2012 and the 5 Kw FM Transmitter at Sambalpur in Odisha is likely to be completed by 2013.
ANNEXURE-I
ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UNSTARRED QUESTION No.5184
FOR REPLY ON 08.05.2012.
Salient features of the approved policy for Phase-III as against Phase-II are:-
(i) Radio operators have been permitted carriage of news bulletins of All India Radio
only in an unaltered form.
(ii) Broadcast pertaining to the certain categories like information pertaining to spor
ting events, traffic and weather, coverage of cultural events, festivals, coverage of top
ics pertaining to examinations, results, admissions, career counseling, availability of em
ployment opportunities, public announcements pertaining to civic amenities like electricity,
water supply, natural calamities, health alerts etc. as provided by the local administra
tion will be treated as non-news and current affairs broadcast and will therefore be perm
issible.
(iii) Private operators have been allowed to own more than one channel but not more than
40% of the total channels in a city subject to a minimum of three different operators in
the city.
(iv) License fee will be determined as 4% of Gross Revenue (GR) or 2.5% of bid price
whichever is higher.
(v) FDI+FII limit in a private FM radio broadcasting company has been increased from
20% to 26%.
(vi) Networking of channels will be permissible within a private FM broadcaster’s own
network across the country instead of in ‘C’ and ‘D’ category cities only of a region all
owed at present.
(vii) A choice is proposed to be given to the private FM broadcasters to choose any agency
other than BECIL for construction of Common Transmission Infrastructure (CTI) within a per
iod of 3 months of issuance of Letter of Intent (LOI) failing which BECIL will automatically
become the system integrator and set up co-location facilities and CTI.
(viii) A license period of 15 years has been specified for licenses proposed to be granted
under FM Phase –III policy.
(ix) Special Incentives for North Eastern States, Jammu & Kashmir (J&K) and Island ter
ritories :
Private FM Radio broadcasters in North Eastern States, Jammu & Kashmir (J&K) and
Island territories will be required to pay half the rate of annual license fee for an in
itial period of three years from the date from which the annual license fee becomes payab
le and the permission period of fifteen (15) years begins.
The revised fee structure has also been made applicable for a period of three
years, from the date of issuance of Guidelines, to the existing operators in these States
to enable them to effectively compete with the new operators.
Apart from the fee relaxation, it is further proposed that Prasar Bharati infrast
ructure would be made available at half the lease rentals for similar category cities in
such areas.
The limit on the ownership of Channels, at the national level, allocated to an
entity has been retained at 15%. However channels allotted in Jammu & Kashmir, North Ea
stern States and island territories will be allowed over and above the 15% national limit
to incentivise the bidding for channels in such areas.
