Private FM stations to start broadcasting news
The Indian government has decided to permit private radio stations to broadcast news from the state run all-India radio. Non-news information to be broadcasted includes local administration’s public announcements, natural calamities and health alerts.
New Delhi: A major policy decision is set to change the face of broadcasting in the country. The cabinet has allowed FM radio stations to broadcast news bulletins from the government-run All India Radio, features and non-political news.
“They (FM stations) can broadcast information of public interest that relates to career, traffic and other such information,” said Minister of Information and Broadcasting Ambika Soni. So far they were not permitted to broadcast news.
Asked why the private broadcasters have not been not allowed to air their own news, she said: “Gradually we are allowing news in the private radio stations and let’s see how it goes”.
The Cabinet also gave green signal to for the third phase of FM radio privatisation from which it expects to raise `1,733 crore in 227 towns with over one lakh population. The licence will be valid for 15 years.
To improve business viability, only three FM channels per city will be allowed against four permitted under phase 2. The lock-in period of shareholding of promoters has been also reduced from five to three years to give them greater freedom to change ownership pattern.
Soni said, “the cabinet also raised the ceiling on foreign direct investment (FDI)) and foreign institutional investments in FM radio broadcasting companies from 20 to 26 %.”
The new policy would allow private operators to network their own channels across the country and own more than one channel, which should not not be more than 40 % of total channels in a city, provided there are at least three different operators in its jurisdiction.
A company, however, cannot have more than 15 % of the total channels in the country, except in Jammu and Kashmir, northeast and island territories.
The Cabinet has approved of an e-auction of airwaves for FM channels on the lines of 3G and BWA (broadband wireless access) spectrum as recommended by the group of ministers on licensing methodology.
The permissible broadcast of information by treating it as non-news include traffic, weather, sports, festivals, career, employment opportunities, local administration’s public announcements, natural calamities, health alerts, etc.
As a special incentive to operators in Jammu and Kashmir, northeast and island territories, only half of the annual licence fee for the first three years will be charged.
