The removal of the three-year window period for restructuring FM radio permissions within the same management group during the 15-year licence period was announced by the government on Tuesday. This decision should open the door for further expansion of these services in smaller cities.
At the Union Cabinet meeting last week, which was presided over by Prime Minister Narendra Modi, it was decided to revise the Policy Guidelines on Expansion of FM Radio Broadcasting Services through Private Agencies (Phase-III).
The changes also simplify the requirements for financial eligibility, enabling businesses with a net worth of Rs 1 crore to participate in the bidding process for category ‘C’ and ‘D’ towns.
The government has also agreed to the radio industry’s long-standing demand that the 15% national cap on channel holding be lifted, the Ministry of Information and Broadcasting announced on Tuesday.
Together, the three modifications will enable the private FM radio sector to fully utilise economies of scale and open the door for additional FM radio and entertainment expansion into Tier-III cities around the country.
In addition to creating new employment opportunities, it would also guarantee that the general public in even the most isolated regions of the nation would have access to music and entertainment via FTA (Free to Air) radio media.
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