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GOVERNMENT OF INDIA
INFORMATION AND BROADCASTING
LOK SABHA
STARRED QUESTION NO:492
ANSWERED ON:30.04.203
EXPANSION OF FM RADIO
Raghavan Shri M. K.;Viswanathan Shri P.
Will the Minister of INFORMATION AND BROADCASTING be pleased to state:
(a) the status of expansion of FM radio broadcasting services in the country under various phases so far;
(b) the details of FM radio operators blacklisted so far, under all the three phases;
(c) whether the Government proposes to relax the existing investment policy for the FM radio stations;
(d) If so, the details thereof and if not, the reasons therefor; and
(6) whether the Government is considering to set up a separate authority to review the performance of the FM radio broadcasting
services and if not, the steps being taken in this regard?
Answer
MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF INFORMATION AND BROADCASTING (SHRI MANISH
TEWARI)
(a) to (e): A Statement is laid on the Table of the House.
STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO.492 FOR ANSWER
ON 30.04.2043.
FM radio sector was thrown open for private participation in the year 999 when the policy for FM Phase-I was announced. FM
Phase-l policy was a limited success as only 25% of the expected licenses could become operational. The deficiencies of Phase-l,
which resulted in only 24 operational channels in 2 cities, were overcome in Phase-ll Policy, announced in the year 2005. It provided
a revenue-sharing regime instead of a fixed fee regime alongwith other changes, resulting in a quantum jump in the growth of the
sector. Presently, a total of 242 channels are operational, including 24 channels of Phase-l. The FM Phase-l and Phase-ll policies
have resulted in a total revenue accrual of about Rs.847.2 crore upto 3.3.203 by way of One Time Entry Fee (OTEF), migration
fee, annual fee etc.
Under Phase-ll Policy 2 FM radio stations of two broadcaster companies namely M/s Century Communications Ltd and M/s Pan
India Network Infravest Ltd, have been debarred from allotment of another channel in the same city(ies) for a period of five years for
violation of Clause 25..4 of Grant of Permission Agreement (GOPA) for not operationlising the channels within the prescribed time
period. Details are given at Annexure.
Under the Policy of expansion of FM broadcasting through Private Agencies (Phase-lll), which has been approved on 07.07.204,
Government propose to e-auction 839 FM channels in 294 cities. The detailed policy guidelines for FM Phase-lll are available on the
Ministry's website www. mib.nic.in.
Under Phase Ill Policy, foreign investment cap in FM radio sector has been enhanced to 26% from the earlier level of 20%. Further,
the largest Indian shareholder in a permit holding company is allowed to dilute its shareholding to a level below 5% after a lock in
period of three years from the date on which all the channels allotted to the company holding permission stand operationalised and
further subject to fulfillment of conditions as prescribed in the Policy. Phase-ll policy did not allow such dilution below 54%. Other
incentives in FM Phase-lll includes permission of carriage of news bulletins of All India Radio only in an unaltered form. Operators
have also been allowed to own more than one channel but not more than 40% of the total channels ina city (subject to a minimum of 3
different operators in the city) and subject to a national ceiling of 5%. Networking of channels is permissible within a private FM
broadcaster's own network across the country instead of 'C' and 'D' category cities of a region allowed under Phase-ll. Also, Annual
license fee has been fixed at 4% of gross revenue or 2.5% of bid price whichever is higher. For the NER, J&K and Island territories
the license fee is fixed at half the normal rate for an initial 3 years period.
Government is not considering setting up of a separate authority to review the performance of the FM radio broadcasting services.
However, contents of FM radio broadcasts are being monitored by Broadcast Engineering Consultants India Ltd. (BECIL). Further
permission holders are legally obliged under the term of the Grant of Permission Agreement (GOPA) to adhere to the same
programme and advertisement codes as followed by All India Radio, as amended from time to time.