The “Policy Guidelines on Expansion of FM Radio Broadcasting Services through Private Agencies (Phase-III)”, also known as the “Private FM Phase-III Policy Guidelines,” contained three amendments that the cabinet approved on Tuesday in order to allow radio channels to take advantage of economies of scale and enhance ease of doing business.
“The decision was taken in the last Cabinet meeting chaired by Prime Minister Narendra Modi,” ministry of information and broadcasting said in a statement.
The first change is the removal of the 3-year window period for FM radio authorization restructuring within the same management group during the license’s 15-year term.
The government has also agreed to the radio industry’s long-standing demand that the 15% National Cap on Channel Holding be lifted.
These three amendments together will help private FM radio industry to “fully leverage the economies of scale and pave the way for further expansion of FM radio and entertainment to Tier-III cities in the country”. “This will not only create new employment opportunities but also ensure that music and entertainment over the FTA (Free to Air) radio media is available to the common man in the remotest corners of the country,” the ministry said.
According to the statement, “The move will ensure that existing rules are streamlined and rationalised to make government more efficient and effective so that its benefits reach the ordinary man.