The Union Cabinet, led by Prime Minister Narendra Modi, has approved the third batch of ascending e-auctions for 730 FM radio channels across 234 new cities. The estimated reserve price for these channels is set at Rs 784.87 crore under the Private FM Radio Phase III Policy.
In addition to approving the auctions, the Cabinet has also set the Annual License Fee (ALF) for FM channels at 4% of Gross Revenue, excluding Goods and Services Tax (GST). This fee structure will be applicable to the 234 cities and towns targeted for the rollout.
The expansion of Private FM Radio into these new areas aims to bridge the gap in FM radio coverage, introducing local content in regional languages and dialects. This initiative is also expected to generate new employment opportunities, support local culture, and promote the ‘vocal for local’ campaign.
Many of the newly included cities and towns are situated in Aspirational districts and areas affected by Left-Wing Extremism (LWE). The introduction of Private FM Radio in these regions is viewed as a strategic effort to enhance government outreach and communication.