Regulators

FM Phase III e-auctions off to slow start; Govt claims Rs 395 crore as winning price

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NEW DELHI: The e-auction for FM Radio channels in Phase III got off to a slow start with no bids in certain cities and the provisional winning price lower than the clock round price.

In all, four rounds of e-auction were held today with 135 FM channels in all the 69 cities of the first stage being opened.

At the close of first day of bidding, 78 channels in 54 cities became provisionally winning channels with cumulative provisional winning price of around Rs 395 crore against their aggregate reserve price of about Rs 357 crore. 

The e-auction began today (27 July) with Auction Activity Requirement set at 80 per cent. A total of 26 bidders were allowed to participate in the auction.

However, there were no bids for 15 cities and the demand over the price in many cities fell by up to three per cent below the aggregate demand.

The Percentage Price Increment (in INR) applicable for the next clock round was five per cent or higher in the metros of Delhi, Mumbai, and Chennai and in cities like Bhubaneswar, Bengaluru, Aurangabad, Ahmedabad, Guwahati, Jodhpur, Karnal, Patna and Pune.

The highest provisional winning price – the same as the clock round price at the end of the fourth round – was in Mumbai – Rs 41.91 crore, Delhi - Rs 37.41 crore, Bengaluru - Rs 25 crore, Hyderabad - Rs 18 crore, Pune – Rs 16.21 crore, Chandigarh - Rs 15.61 crore; Chennai - Rs 14.2 crore; Lucknow - Rs 14 crore and Ahmedabad Rs 13.89 crore.

The ongoing auction is a Simultaneous Multiple Round Ascending (SMRA) e-auction, which is being conducted online from Auction Control Room No. 404 B Wing, Shastri Bhawan.

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