Union Government cleared Guidelines of the FM Radio Phase III Expansion

The Union government on 7 July 2011 cleared guidelines of the much-delayed FM Radio Phase III expansion. The FM Radio Phase III expansion  will allow private radio channels to broadcast news of All India Radio and enable revenue generation of Rs 1733 crore from the auction of licence for services in 227 cities in the country. 

 A meeting of the Cabinet chaired by Prime Minister Manmohan Singh also approved hiking of foreign investment limit in private FM radio broadcasting company to 26% from the current 20%. The FM Phase-III policy will extend FM radio services to about 227 new cities, in addition to the present 86 cities with a total of 839 new FM radio channels. 

The FM phase III policy will result in coverage of all cities with a population of one lakh and above through private FM channels.   

The Phase I and Phase II policies resulted in a total revenue accrual of about Rs 1733 crore up to 31 May 2011 by way of one time entry fee, migration fee and annual fee among others.