New Delhi, August 28
Union Cabinet on Wednesday approved rolling out private FM radio to 234 cities or towns, that remained uncovered by far.
The Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal to conduct 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 also approved the proposal to charge Annual License Fee (ALF) of FM channel as 4 per cent of gross revenue excluding Goods and Services Tax (GST). This will be applicable to the new 234 new cities and towns.
"The Private FM Radio rollout in 234 new cities/towns will fulfill the unmet demand for FM radio in these cities/towns, which still remain uncovered by Private FM radio broadcasting and bring new/local content in the mother tongue," an official release said.
The release said it will lead to creation of new employment opportunities, boost local dialect and culture and 'vocal for local' initiatives.
Many of the approved cities or towns are in aspirational districts and Left Wing Extremism-affected areas. Setting up private FM radio in these areas will further strengthen public outreach in these areas, the release said.