Notice Inviting Applications (NIA) issued for e-auction of 135 Private FM Radio Channels in 69 Cities in First Batch of FM Phase III

Ministry of Information and Broadcasting, Government of India has issued the Notice Inviting Applications (NIA) for e-auction of 135 channels of Private FM Radio in 69 existing cities of Phase II in the first batch of FM Phase III on 2nd March, 2015.

The first batch auction will pave the way for FM Phase III regime, which will bestow many new facilities on the operators under the regime. In Phase III, license will be for 15 years as against 10 years in Phase II. Total FDI/ FII allowed in new regime is 26% as compared to 20% in Phase II. An operator in Phase III regime may own upto 40% of channels in the same city subject to three different operators in the city, whereas earlier policy provided for only one channel per city per operator. New regime also gives an operator networking facility in its own network within the country. Unlike Phase II, Phase III regime permits the operators to carry the news bulletins of All India Radio in unaltered form on mutually agreed terms and conditions with Prasar Bharati.

As the government has rejuvenated its approach towards North Eastern part of India with its 'Act East' policy, FM phase III policy also exudes this sentiment. It provides much needed support to the FM radio broadcasting services in cities of North Eastern part of India as in the cities of Jammu & Kashmir and Island territories, with provision of annual fee of the channels in these areas at half the rates for first three years, besides Prasar Bharati Infrastructure at half the lease rentals.

The Notice comprises the eligibility criteria, application procedures, reserve prices of channels, frequencies available for selection, auction rules, etc. and is aimed at inviting applications from the interested companies for participation in the forthcoming auction. Applications are required to be submitted latest by 5.00 PM on 23rd March, 2015. Based on the Applications, the Government shall pre-qualify Applicants who meet the eligibility criteria for participation in the auction.

The Notice, available on Ministry's website www.mib.nic.in, is definitive and takes precedence. Its issuance is part of the process that began with the notification of FM Phase III Policy dated 25.07.2011, read with its modified paragraph 31 dated 21.01.2015 for expansion of FM radio broadcasting through private agencies, with the objectives of attracting the agencies to supplement and complement the efforts of All India Radio.

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