FM Phase-III batch III e-auction sees competitive start with five intense clock rounds completed on Day 1

The first day of the Phase-III Batch III e-auction of private FM radio channels saw a promising start, with bidders completing five intense clock rounds on July 9, 2025.

According to the Ministry of Information and Broadcasting’s Day 1 report, multiple cities registered active bids, with several locations exceeding their reserve prices and seeing excess demand for limited frequencies.

As part of the current phase, the government has put 730 FM channels across 234 cities up for auction, aiming to expand private FM radio to new towns and semi-urban markets. While the auction began with cautious optimism, the Day 1 data shows a clear emergence of hot zones with significant bidding activity.

Read more: MIB extends bidding round duration in FM Phase III e-auctions to boost participation

Ludhiana topped the charts with the highest provisional winning price of Rs 7.83 crore for one of its four available channels. The city witnessed excess demand of -3, suggesting high interest from multiple players. Haridwar, too, saw a notable bid at Rs 1.08 crore, while Palakkad in Kerala drew three competing bids, reaching a provisional winning price of Rs 1.69 crore by the fifth round.

Among other cities registering aggressive bidding were: Kanhangad (Kasaragod) – Rs 1.55 crore, with three bidders and no excess demand remaining; Karur – Rs 1.68 crore, with two bids still competing; Thanjavur – Rs 1.57 crore, showing continued interest; Panipat – Rs 1.13 crore, with multiple players still in the fray; Mathura – Rs 87 lakh, indicating heightened competition in North Indian towns.

Several smaller towns such as Bhilwara, Dindigul, Faizabad/Ayodhya, and Sikar also saw multi-bidder activity, with prices hovering between Rs 73 lakh and Rs 1.53 crore, depending on regional demand and channel availability.

Of the cities on auction, only a select few witnessed provisional winning prices being set by the end of Day 1, with the majority still open for further bidding in the next rounds. A significant number of cities saw zero demand and remained below reserve price—indicating strategic holdouts or market hesitation.

The auction is being conducted in the Simultaneous Multiple Round Ascending (SMRA) format, allowing bidders to place competing offers over successive rounds until demand stabilizes. Clock rounds continue until there is no excess demand in any city, allowing true market-driven price discovery.

With infrastructure support through Prasar Bharati tower co-location and rules mandating timely rollout post-license, the current batch is aimed at improving FM radio penetration in previously uncovered regions.

The auction marks the third phase of India’s push to expand private FM broadcasting. In August, the cabinet, led by Prime Minister Narendra Modi, approved the plan to auction 730 channels in 234 cities with a reserve price of 7.85 billion rupees. The Ministry of Information and Broadcasting began inviting applications in October.

In preparation for the auction, the ministry revised its rules in April, extending the duration of each round in the allocation stage from 30 to 60 minutes. Officials say the change is designed to give bidders more time to consider their offers, potentially leading to more efficient price discovery.

Read more: E-auction of third batch of Private FM Radio Phase III channels to start on July 9

The expansion comes as the private FM radio sector seeks new growth amid rising competition from digital streaming platforms and a fragmented advertising market. The government hopes the auction will encourage broader participation and investment in local radio, particularly in smaller cities where FM remains a critical source of news and entertainment.

Recently, I&B Secretary Sanjay Jaju said more than 20 major companies have shown interest in bidding for the licenses under the government’s Private FM Radio Phase III policy. “There are a lot of gains being made now in terms of private FM radio; the auctions are slated to start this month, and I am sure they will see good participation."

Read more: Radio players' conservative bid in third batch of phase-III FM e-auctions