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| indiantelevision.com's Breaking News |
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| Phase II target of I&B minister
for FM Radio may not be met |
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Indiantelevision.com
Team
(25 December 2002 6:00 pm) |
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| NEW DELHI: Though India's information and
broadcasting minister Sushma Swaraj would like the second phase of
privatisation of FM radio to be completed within the next quarter,
bureaucrats feel there may be some hindrances. |
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Speaking to indiantelevision.com, a senior
official of the I&B ministry said, "It's laudable of the minister
to take up so seriously the second phase of FM radio, but there are
certain issues which need to be looked into before this is done."
Pointing out that a final decision, keeping other factors in mind,
will rest with the minister only, the official added, "Issues like
pending litigation from the first phase of FM radio sector's opening
up will have to be taken into account before the formalities for the
rollout for the second phase is completed."
For the second phase of private FM radio, around 70 cities have been
identified. As for AIR FM, around 60 to 65 stations are expected to
come up till 2007. At present, there are 234 AIR FM stations in 200-odd
cities/towns. Private FM is present in nine cities even as more private
FM stations are expected to come up in another six cities, including
Delhi.
The ministry official also said that this time round the government
might not go in for auctioning of the licences in various cities and
evolve some other methods of giving licences.
"Past experience has shown us that auctioning of licences mean bids
which at times go very high. Later the players concerned realise they
have bid too high and the business model has become unviable. We don't
want a repetition of this as this point had led to quite a few private
companies, during the first phase, to move the courts," he explained.
Swaraj in an interview to indiantelevision.com last weekend had said
that as part of her next year's agenda the government would like to
complete the formalities of the second phase of FM radio by 31 March
2003. As reported by us earlier, she had also said that the government
is looking at working out a mechanism which would help avoid duplication
of efforts by All India Radio and private players in the same geographical
area.
"We are looking as to how avoid duplication. In those places where
AIR already operates FM stations, we'd probably won't like the private
players to go as they can go to those cities where AIR does not operate
FM radio," Swaraj had said.
Recently Swaraj had stated in Parliament that the government had earned,
so far, a total revenue of Rs. 1551.2 million on account of open auction
of FM radio stations, which includes earnest money, but excludes bank
guarantees lying with the government. Auctioning for licences was
held for 40 cities earlier. |
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