E-auction of FM radio channels begins

The e-auction for the first batch of 135 channels in 69 cities as part of the private FM Radio Phase III expansion began today with four rounds of bidding taking place on the first day.
"At the close of first day of bidding, 78 channels in 54 cities became Provisionally Winning Channels with cumulative provisional winning price of around Rs 395 crore against their aggregate reserve price of about Rs 357 crore," according to an official release here today.
As per the statement, the auction began today with Auction Activity Requirement set at 80 per cent. Total 26 bidders were allowed to participate in the auction.

The ongoing auction is a Simultaneous Multiple Round Ascending (SMRA) e-auction which is being conducted online from Auction Control Room No. 404 B Wing, Shastri Bhawan.
Sources said that the auctions on the first day had gone as per expectations with good bidding for channels in cities like Delhi, Mumbai, Bhubneswar and Patna, while it was hoped that more bids would be received for other cities over the coming days.
While the officials emphasised that it is not easy to predict the exact number of days the auctions would take, an official said that it was likely that the e-auctions for first batch of channels may take around two weeks.

Asked about the participation Digital Radio Broadcasting Ltd, which runs Red FM and is associated with Kalanithi Maran-promoted Sun TV, officials said that court orders have been complied with.
Yesterday, in a relief for Red FM, the Delhi High Court had quashed the government's decision to deny security clearance to the radio channel and reject its application for permission to take part in Phase III of FM auctions. The High Court bench had allowed Digital Radio Broadcasting Ltd to participate in the e-auction.
Bidding will re-commence tomorrow at 9.30 AM, the release said.