Union Cabinet approves e-auction proposal, expansion of private FM radio in 234 cities

The union cabinet, led by Prime Minister Narendra Modi, on Wednesday has approved the expansion of private FM radio services to 234 new cities across India. This move is part of the 3rd batch of ascending e-auctions under the Private FM Radio Phase III Policy, offering 730 new channels.

The estimated reserve price for these channels is set FM radio at Rs 784.87 crore. In addition, the Cabinet has approved a new Annual License Fee (ALF) for these FM channels, which will be 4% of their Gross Revenue, excluding Goods and Services Tax (GST).

This fee structure will apply to the FM channels introduced in these 234 new cities.

This expansion is aimed at meeting the growing demand for FM radio in areas that currently do not have access to private FM broadcasting. It will bring local content, often in the regional languages of these areas, to new listeners.

The rollout is also expected to create new job opportunities and promote local dialects and culture, supporting the government's 'vocal for local' initiative.

Many of the cities and towns included in this plan are located in Aspirational districts and areas affected by Left Wing Extremism (LWE). The introduction of private FM radio in these regions is expected to strengthen government outreach and improve communication.