The Union Cabinet on Wednesday approved a proposal to hold a third batch of ascending e-auctions for 730 channels in 234 new cities under Private FM Radio Phase III Policy. The estimated reserve price has been pegged at Rs 784.87 crore. Union Information and Broadcasting Minister Ashwini Vaishnaw said here that the Cabinet also approved a proposal to charge an annual license fee (ALF) for the FM channel as four per cent of gross revenue excluding GST.

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This will be applicable to 234 new cities/towns. The private FM radio rollout in 234 new cities and towns will fulfill the unmet demand for FM radio in these areas which still remain uncovered by private FM radio broadcasting and bring new and local content in mother tongue, an official statement said. It will lead to the creation of new employment opportunities, boost local dialect and culture, and ‘vocal for local' initiatives, it underlined.

Many of the approved towns are in aspirational districts and left-wing-affected areas. Setting up of private FM radio in these areas will further strengthen government outreach in these areas, the statement said