Centre clears amendments in FM radio norms

NEW DELHI: The government has approved the proposed amendments in its policy guidelines for private FM radio stations, aiming to pave the way for their expansion in smaller cities. The key amendment of lowering the financial eligibility criteria will now allow participation of companies with net worth of just Rs 1 crore, in place of Rs 1.5 crore earlier, in biddings for ‘C’ and ‘D’ category cities.
Besides, the government has decided to remove the three-year window period for restructuring of FM radio permissions within the same management group during the license period of 15 years. It has also accepted the long pending demand of the radio industry to remove the 15% national cap on channel holding.
The decisions to amend the Policy Guidelines on Expansion of FM Radio Broadcasting Services through Private Agencies (Phase-III) were taken in the cabinet meeting, chaired by Prime Minister Narendra Modi, last week.
“These three amendments together will help private FM radio industry to fully leverage the economies of scale and pave the way for further expansion of FM radio and entertainment to Tier-III cities in the country,” said a statement from the ministry of information & broadcasting on Tuesday. It said, “This will not only create new employment opportunities but also ensure that music and entertainment over the FTA (Free to Air) radio media is available to the common man in the remotest corners of the country.”
Radio broadcasters believe these measures will make it somewhat easier to do business. The president of Association of Radio Operators of India, Anurradha Prasad said, “For this, we at AROI are truly grateful to the I&B minister Anurag Thakur and secretary Apurva Chandra. After waiting for many years, the radio industry has finally got this relief.”
“The reforms will make it financially easier for interested small broadcasters to participate in future auctions and will facilitate mergers and acquisitions in the industry,” said the AROI in a statement.