Govt eases FM auction terms for remote regions

The Ministry of Information & Broadcasting has introduced key amendments to the Private FM Radio Phase-III Policy Guidelines as part of the upcoming Batch-II and Batch-III FM radio auctions. These updates, aimed at broadcasters in uncovered cities, include new reserve prices based on TRAI's recommendations and changes to the annual fee structure, with special provisions for broadcasters in remote regions.

The reserve price for FM channels in uncovered new cities will now be based on the Telecom Regulatory Authority of India (TRAI) recommendations from 2022. This change is outlined in the amendment to Para 4.6 of the FM Phase-III Policy Guidelines.

“The reserve price shall be the reserve price recommended by TRAI in 2022,” said the official order, dated September 10, 2024.

Under the new guidelines, broadcasters who acquire licences in uncovered cities through Batch-III auctions will be required to pay an annual fee based on their gross revenue. The updated Clause 6.1 (aa) stipulates a 4% annual fee of the broadcaster's gross revenue, excluding Goods and Services Tax (GST).

“Permission holders in uncovered new cities under Batch-III FM Phase-III auction shall be liable to pay an Annual Fee to the Government of India every year charged @ 4% of Gross Revenue of its FM radio channel for the financial year for the concerned city excluding Goods and Service Tax,” said the notice.

The ministry has introduced further incentives for broadcasters in remote regions, including the North Eastern states, Jammu & Kashmir, and island territories such as the Andaman & Nicobar Islands and Lakshadweep. For the first three years, these broadcasters will pay a reduced annual fee of 2% of their gross revenue, excluding GST, as per the newly added Clause 6.1(ba).

The order also clarifies that broadcasters will receive a 15-year permission period for FM channels, starting from the date the annual licence fee becomes payable.

On August 28, the Union Cabinet, chaired by the Prime Minister approved the proposal for the conduct of the 3rd batch of ascending e-auctions for 730 channels in 234 new cities with an estimated reserve price of Rs 784.87 crore under the Private FM Radio Phase Ill Policy.

The cabinet has also approved the proposal to charge Annual License Fee (ALF) of FM channel as 4% of Gross Revenue, excluding Goods and Services Tax (GST). This will be applicable to 234 new cities or towns.