[HCDX] Govt notifies new FM Radio policy 7/14/2005 12:01:42 PM IST

[Mukesh Kumar <thecosmosclub@xxxxxxxxxxx>]

Govt notifies new FM Radio policy 7/14/2005 12:01:42
PM IST 	

The Ministry of Information & Broadcasting (I&B) has
formulated a policy on expansion of FM radio
broadcasting services through private agencies
(Phase-II). The objectives of Phase-II should be to
attract private agencies to supplement and complement
the efforts of All India Radio (AIR) by
operationalising radio stations that provide
programmes with local content and relevance, improve
the quality of fidelity in reception and generation,
encouraging participation by local talent and
generating employment, the Ministry says in a
statement.Last month, I&B Minister S. Jaipal Reddy
announced the much-awaited (and perhaps long-overdue)
Phase-II expansion of FM radio broadcasting services
through private agencies. As part of the new policy,
the FM radio players, new as well as existing ones,
would switch over to a revenue-sharing regime from the
current license fee structure. Existing FM station
operators would be allowed to migrate to the new
regime as well, but for a one-time entry fee. The new
FM radio broadcasters would have to shell out a
one-time entry fee based on the closed bidding
process. Reddy said he would give out licenses in 90
more cities. The Ministry would separately issue
detailed tender notice in due course enabling the
interested parties to participate. All FM radio
service providers would have to share 4% of their
gross annual revenue or 10% of the reserve one-time
entry fee limit for the concerned city, whichever is
higher. Gross revenue for this purpose would be the
gross revenue without deduction of taxes. Reddy also
said that 20% Foreign Direct Investment (FDI) would be
allowed into the companies running the private FM
stations, within the existing 20% cap for Foreign
Institutional Investors (FIIs).The process of granting
permission for new participants under Phase II should
consist of two rounds. The first round should be for
pre-qualification and only applicants qualifying in
accordance with prescribed eligibility criteria would
proceed to the next round for making financial bids
for specific channels in different cities.Participants
of Phase I, who exercise their option to be considered
for Phase II, including those licensees who are
eligible for automatic migration for channels already
operationalised by them, should be eligible to be
considered for the pre-qualification round for fresh
tendering under Phase II, subject to their fulfilling
the prescribed eligibility criteria.Only companies
registered under the Indian Companies Act, 1956 should
be eligible for bidding and obtaining permission for
FM radio channels. Bidding would be conducted at
Delhi, Mumbai, Kolkata and Chennai for the respective
four regions of the country with dates fixed at weekly
intervals. Since companies would be eligible to
participate in bidding for channels in all the four
regions, their financial competence should be assessed
on the basis of the following indicative
criteria:Minimum net worth required for one channel
per center in all regions:·	D category Centers: Rs5mn
·	C category Centers: Rs10mn ·	B category Centers:
Rs20mn ·	A or A+ category Centers: Rs30mn ·	All
Centers: Rs100mn However, each company may intimate in
writing the maximum number of channels in different
categories of cities it desires to bid for and its
eligibility would be determined accordingly. In case
the applicant does not wish to intimate these details,
the applicant company should have the minimum net
worth of Rs100mn.Every pre-qualified applicant may
apply for allotment of only one channel in each city
through a separate financial bid for payment of
one-time entry fee for each channel. Every applicant
should be allowed to run only one channel per city,
provided the total number of channels allocated to an
entity is within the overall ceiling of 15% of all
allocated channels in the country. No entity should
hold permission for more than 15% of all channels
allotted. In the event of allotment of more channels
than prescribed, the entity would have the discretion
to decide which channels it would like to surrender
and the Government should refund its one-time entry
fee for these channels in full.No news and current
affairs programs are permitted under Phase-II. Every
permission holder should follow the AIR Program and
Advertising Code as amended from time to time. In the
event of the Government announcing the setting up of a
Broadcast Regulatory Authority, by whatever name
called, and the content regulations are modified, the
permission holder should be obliged to conform to the
revised guidelines.

Via: http://indiainfoline.com/
Regards & 73?s
Mukesh Kumar
MUZAFFARPUR
INDIA



		
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