Govt hikes FDI in FM radio sector to 26%, expects to raise Rs 1,733 crore

The Indian government hiked Foreign Direct Investment (FDI) in the FM radio sector to 26 per cent from 20 per cent, clearing the third phase of radio expansion proposals, and approved auction of additional spectrum to raise Rs1,733 crore.

''The Union Cabinet in its meeting today has approved the proposal of the m inistry of information and broadcasting to approve the 'Policy Guidelines on Expansion of FM radio broadcasting services through private agencies (Phase-Ill)','' a statement issued the ministry said.

The cabinet has also cleared the ministry's proposal for conducting an e-auction, similar to that followed by department of telecommunications for the auction of 3G and BWA spectrum.

The phase-III policy extends FM radio services to 227 new cities, in addition to the present 86 cities, with a total of 839 new FM radio Channels in 294 cities.

This policy will result in coverage of all cities with a population of one-lakh and above with private FM radio channels, it said.

Most of new stations to be commissioned through this auction are going to be in smaller cities and towns, which have none or very few private players in the radio space.