Special package for jk

Special package to start private FMs in J&K

While giving a green signal signal to e-auction of new FM radio channels in 227 towns with over one lakh population through a private agency in phase 3, Union Cabinet here on Thursday announced special incentives for Jammu and Kashmir and the North-east. The Cabinet also allowed non-political news, features and also petmitted stations to carry the news bulletins of the government run All India Radio.

The incentives provided in the Policy for North Eastern States, besides J&K would make the operations viable in these areas and are expected to result in better off-take of channels. The steps taken in the new policy will bring down operational costs and improve viability in general, the I&B Minister said.  In J&K, the government has proposed that reserve price be kept at Rs. 5 lakh.

A significant aspect of the new guideline is that at least 11 cities in border areas of North-east even though having a population of less than 1 lakh have been included in the list for strategic reasons and to counter cross border propaganda, after consultation with Ministries of Home Affairs and Defence, sources said.

Union Information and Broadcasting Miniter Ambika Soni while outlining the new policy guideline said that private FM radio broadcasters in North-east (NE) would be required to pay half the rate of annual license fee for an initial period of three years from the date from which the annual license fee becomes payable and the permission period of fifteen (15) years begins.
The revised fee structure has also been made applicable for a period of three years, from the date of issuance of guidelines, to the existing operators in these States to enable them to effectively compete with the new operators, the Minister said.
Apart from the fee relaxation, it is further proposed that Prasar Bharati infrastructure would be made available at half the lease rentals for similar category cities in such areas, said Soni.

The limit on the ownership of Channels, at the national level, allocated to an entity has been retained at 15 percent. However, channels allotted in Jammu & Kashmir, North Eastern States and island territories will be allowed over and above the 15 percent national limit to incentivise the bidding for channels in such areas.

To improve viability, only three FM channels will be allowed in a city in this phase as against four permitted in 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 the ownership pattern.

Information and Broadcasting Minister Ambika Soni told a Press conference here that the Cabinet also raised ceiling on the FDIs (foreign direct investment) and foreign institutional investments in the FM radio broadcasting companies from 20 to 26 percent.

The new policy allows private operators to network their own channels across the country and own more than one channel but not more than 40 percent 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 per cent of the total channels in the country, except in Jammu and Kashmir, North East and island territories.

Soni said the Cabinet okayed an ascending e-auction of airwaves for the FM channels on the lines of auction 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, coverage of sporting and cultural events, festivals, coverage of topics pertaining to examinations, results, admissions, career counselling, employment opportunities, as also local administration's public announcements pertaining to civic amenities like electricity, water supply, natural calamities, health alerts, etc.

As a special incentive to the FM operators in Jammu and Kashmir, North East and island territories, they will be charged only half the annual licence fee for the first three years and this includes the existing operators. They will also be allowed use of the Prasar Bharti infrastructure at half the lease rentals.

The e-auction for the channels will be conducted in batches, their number depending upon the response from the bidders after auction of the first batch. Soni said the agency for conducting the e-auction will be selected through a transparent process.
She said her Ministry will separately issue a detailed Information Memorandum, in due course, enabling the prospective bidders to participate, and also indicating the cities, reserve prices city-wise, number of channels to be taken up in each batch and other procedures for e-auction. A Notice Inviting Applications (NIA) for participation in the Auction(s) will also be issued in due course of time.