Phase III FM Radio Auctions Set to Cross Rs. 1000 Crore
Information
and Broadcasting Ministry Invites Application for e-auction of 266 FM Radio
Channels in 92 Cities
According to recently released report by
TechSci Research “India
FM Radio Market By Type (Traditional FM Radio, Internet
FM Radio), By Sector (Retail, Real Estate, Automobile, Education, Others), By
Ownership (Public and Private), By Region (North, East, West, South) Forecast
& Opportunities, 2011-2021” FM
Radio market is currently witnessing the exponential growth on the back of
increasing expansion initiatives of FM Radio channels supported by the
government, growing advertisement spending of brands to reach to the diverse
customer base, increasing use of internet radio, and so on. Internet radio is
relatively new concept to the India FM Radio ecosystem which helps the FM Radio
companies to reach to diverse geographies. With the increasing internet
penetration in the country more and more people are listening music via
internet. Further, the growing smartphone user base which is expected to cross
390 million by 2021 is driving the internet FM radio market in the country.
Information and Broadcasting Ministry,
Govt. of India announced roll-out of e-auction for 266 FM Radio Channels in 92
cities under the second batch of FM Phase III expansion plan. The aim of the
expansion plan is to provide FM Radio services in small towns and cities across
India including the border areas of Jammu and Kashmir, and Northeast states
such as Tripura, Nagaland, Assam, Meghalaya and Mizoram. The second batch
consists of 227 channels in 69 new cities and 39 channels in 23 existing cities
in the country.
The rollout includes five categories –
Category A (with population above 20 lakhs), Category B (with population above
10 lakhs and up to 20 lakhs), Category C (with population above 3 Lakhs and up
to 10 Lakhs) and Category D (with population above 1 Lakhs and up to 3 Lakhs)
and Others (Cities with a population up to 1 Lakhs).
Among 92 cities, 2 cities fall under
Category B; 37 cities with 111 channels are under Category C; 41 cities with
117 channels have a population of 1-3 lakhs; and 33 channels are allocated to small
towns in Jammu Kashmir and North Eastern states which have a population of up
to 1 lakh. Hyderabad is the only metro which would form a part of this auction.
The ministry issued a notice regarding e-auction
of the second batch of FM Phase III expansion plan on 20th June, 2016. The last
date of submitting the application is 1st August, 2016 and applicants have to
submit the ownership details by 16th August, 2016. On 22 August, 2016, Bidder
Ownership Certificate would be issued, followed by pre-qualification of bidders
on 1st September, 2016.
Ministry of Information &
Broadcasting has set certain eligibility criteria for the bidding process.
According to the set criteria, those companies are eligible for bidding and
obtaining permission for operating FM Radio channels which are registered in
India under the Companies Act, 2013 or Companies Act, 1956.
Further, companies have to provide the
details of total direct and indirect foreign investments to the ministry and it
shall not exceed 26% at the time of application. Moreover, the companies participating
in the bidding process should have the following minimum net worth:
|
Minimum
Net Worth Criteria for an Applicant
|
|
Categories
|
Net
Worth
|
|
D Category Cities and cities with
population up to 1 lakh
|
INR 50 Lakhs
|
|
C Category Cities
|
INR 1 Crore
|
|
B Category Cities
|
INR 2 Crore
|
|
A Category Cities
|
INR 3 Crore
|
|
All Categories of Cities in all
regions
|
INR 10 Crore
|
|
Note:
For two or more C category cities in the same region, Net Worth of INR 1
Crore is required. If the two C category cities are in two different regions,
Net Worth of INR 2 Crore is required.
|
|
Source: Ministry of Information
& Broadcasting, Government of India
|
Further, the ministry stated that the
Indian shareholder should have 51% equity share in the company excluding the
equity share held by scheduled banks and public financial institutions, and the
largest shareholder would have the control over the applicant entity. Further,
the company’s all board of directors, channel head, CEO, and all key executives
should be residents of India.
Ministry of Information and Broadcasting
has also set a non-refundable application processing fees of INR 25,000.
Interested companies can secure the copy
of the notice (N-38014/31/2016-FM) and related documents from www.mib.nic.in.
TechSci Research report estimates that the
Ministry of Information and Broadcasting would generate at least Rs. 1000 crore
after successful completion of Phase III expansion plan.
Download
Sample Report @ https://www.techsciresearch.com/sample-report.aspx?cid=713
Customers can also
request for 10% free customization on this report.
The ministry would also be able to
generate revenues from the private companies in the form of annual fee charged
to the channel company, which is 4% of the Gross Revenue of its FM radio
channel for the financial year or 2.5% of Non-Refundable One Time Entry Fees
for the concerned city, whichever is higher. However, for the North eastern
states, the government of India has fixed the fee of 2% of Gross Revenue
annually or 1.25% of Non-Refundable One Time Entry Fees for the concerned city,
whichever is higher, for first three years from the date annual license fee is
payable.
Further, with the expansion of FM Radio
in 69 new cities and 23 existing cities, India FM Radio market is expected to witness
an exponential growth in the coming years, with FM Radio companies witnessing
increase in their revenues from advertisements by on-boarding new customers as
well as by providing wider geographical reach to their existing clientele.
|
List of Cities, By
State and Number of FM Radio Channels for Auction
|
|
S. No.
|
City
|
State
|
Number of Channels for Auction
|
Category
|
|
1
|
Hyderabad
|
Telangana
|
1
|
Category A
|
|
2
|
Asansol
|
West Bengal
|
2
|
Category B
|
|
3
|
Vijayawada
|
Andhra Pradesh
|
2
|
Category B
|
|
4
|
Akola
|
Maharashtra
|
1
|
Category C
|
|
5
|
Alappuzha
|
Kerala
|
4
|
Category C
|
|
6
|
Amravati
|
Maharashtra
|
4
|
Category C
|
|
7
|
Belgaum
|
Karnataka
|
4
|
Category C
|
|
8
|
Bellary
|
Karnataka
|
4
|
Category C
|
|
9
|
Bhavnagar
|
Gujarat
|
4
|
Category C
|
|
10
|
Dehradun
|
Uttarakhand
|
4
|
Category C
|
|
11
|
Devengeri
|
Karnataka
|
4
|
Category C
|
|
12
|
Dhule
|
Maharashtra
|
2
|
Category C
|
|
13
|
Erode
|
Tamil Nadu
|
4
|
Category C
|
|
14
|
Gulbarga
|
Karnataka
|
3
|
Category C
|
|
15
|
Hubli-Dharwad
|
Karnataka
|
4
|
Category C
|
|
16
|
Jamnagar
|
Gujarat
|
4
|
Category C
|
|
17
|
Jhansi
|
Uttar Pradesh
|
2
|
Category C
|
|
18
|
Kakinada
|
Andhra Pradesh
|
4
|
Category C
|
|
19
|
Kurnool
|
Andhra Pradesh
|
4
|
Category C
|
|
20
|
Malegaon
|
Maharashtra
|
4
|
Category C
|
|
21
|
Mangaluru
|
Karnataka
|
1
|
Category C
|
|
22
|
Muzaffarpur
|
Bihar
|
1
|
Category C
|
|
23
|
Muzaffarnagar
|
Uttar Pradesh
|
4
|
Category C
|
|
24
|
Mysuru
|
Karnataka
|
2
|
Category C
|
|
25
|
Nanded
|
Maharashtra
|
2
|
Category C
|
|
26
|
Nellore
|
Andhra Pradesh
|
4
|
Category C
|
|
27
|
Puducherry
|
Puducherry(UT)
|
1
|
Category C
|
|
28
|
Rajahmundry
|
Andhra Pradesh
|
3
|
Category C
|
|
29
|
Saharanpur
|
Uttar Pradesh
|
4
|
Category C
|
|
30
|
Salem
|
Tamil Nadu
|
4
|
Category C
|
|
31
|
Sangli
|
Maharashtra
|
1
|
Category C
|
|
32
|
Shahjahanpur
|
Uttar Pradesh
|
4
|
Category C
|
|
33
|
Siliguri
|
West Bengal
|
1
|
Category C
|
|
34
|
Tiruchy
|
Tamil Nadu
|
2
|
Category C
|
|
35
|
Tirunelveli
|
Tamil Nadu
|
2
|
Category C
|
|
36
|
Tirupati
|
Andhra Pradesh
|
2
|
Category C
|
|
37
|
Tuticorin
|
Tamil Nadu
|
2
|
Category C
|
|
38
|
Ujjain
|
Madhya Pradesh
|
4
|
Category C
|
|
39
|
Vellore
|
Tamil Nadu
|
4
|
Category C
|
|
40
|
Warangal
|
Telangana
|
3
|
Category C
|
|
41
|
Achalpur
|
Maharashtra
|
3
|
Category D
|
|
42
|
Agartala
|
Tripura
|
1
|
Category D
|
|
43
|
Aizwal
|
Mizoram
|
1
|
Category D
|
|
44
|
Barshi
|
Maharashtra
|
3
|
Category D
|
|
45
|
Bharuch
|
Gujarat
|
3
|
Category D
|
|
46
|
Botad
|
Gujarat
|
3
|
Category D
|
|
47
|
Burhanpur
|
Madhya Pradesh
|
3
|
Category D
|
|
48
|
Chhattarpur
|
Madhya Pradesh
|
3
|
Category D
|
|
49
|
Chhindwara
|
Madhya Pradesh
|
3
|
Category D
|
|
50
|
Damoh
|
Madhya Pradesh
|
3
|
Category D
|
|
51
|
Dahod
|
Gujarat
|
3
|
Category D
|
|
52
|
Durg Bhillainagar
|
Chhattisgarh
|
3
|
Category D
|
|
53
|
Godhra
|
Gujarat
|
3
|
Category D
|
|
54
|
Gondiya
|
Maharashtra
|
3
|
Category D
|
|
55
|
Guna
|
Madhya Pradesh
|
3
|
Category D
|
|
56
|
Itanagar
|
Arunachal Pradesh
|
1
|
Category D
|
|
57
|
Itarsi
|
Madhya Pradesh
|
3
|
Category D
|
|
58
|
Jagdalpur
|
Chhatisgarh
|
3
|
Category D
|
|
59
|
Jetpur Navagadh
|
Gujarat
|
3
|
Category D
|
|
60
|
Junagadh
|
Gujarat
|
3
|
Category D
|
|
61
|
Khandwa
|
Madhya Pradesh
|
3
|
Category D
|
|
62
|
Khargone
|
Madhya Pradesh
|
3
|
Category D
|
|
63
|
Korba
|
Chhatisgarh
|
3
|
Category D
|
|
64
|
Mehsana
|
Gujarat
|
3
|
Category D
|
|
65
|
Mandsaur
|
Madhya Pradesh
|
3
|
Category D
|
|
66
|
Murwara
|
Madhya Pradesh
|
3
|
Category D
|
|
67
|
Neemuch
|
Madhya Pradesh
|
3
|
Category D
|
|
68
|
Palanpur
|
Gujarat
|
3
|
Category D
|
|
69
|
Patan
|
Gujarat
|
3
|
Category D
|
|
70
|
Porbandar
|
Gujarat
|
3
|
Category D
|
|
71
|
Raigarh
|
Chhatisgarh
|
3
|
Category D
|
|
72
|
Ratlam
|
Madhya Pradesh
|
3
|
Category D
|
|
73
|
Rewa
|
Madhya Pradesh
|
3
|
Category D
|
|
74
|
Satna
|
Madhya Pradesh
|
3
|
Category D
|
|
75
|
Shivpuri
|
Madhya Pradesh
|
3
|
Category D
|
|
76
|
Singrauli
|
Madhya Pradesh
|
3
|
Category D
|
|
77
|
Surendranagar Dudhrej
|
Gujarat
|
3
|
Category D
|
|
78
|
Veraval
|
Gujarat
|
3
|
Category D
|
|
79
|
Vidisha
|
Madhya Pradesh
|
3
|
Category D
|
|
80
|
Wardha
|
Maharashtra
|
3
|
Category D
|
|
81
|
Yavatmal
|
Maharashtra
|
3
|
Category D
|
|
82
|
Kargil
|
Jammu & Kashmir
|
3
|
Cities in Border Area of J & K and NE states
|
|
83
|
Leh
|
Jammu & Kashmir
|
3
|
Cities in Border Area of J & K and NE states
|
|
84
|
Kathua
|
Jammu & Kashmir
|
3
|
Cities in Border Area of J & K and NE states
|
|
85
|
Poonch
|
Jammu & Kashmir
|
3
|
Cities in Border Area of J & K and NE states
|
|
86
|
Bhaderwah
|
Jammu & Kashmir
|
3
|
Cities in Border Area of J & K and NE states
|
|
87
|
Dubhri
|
Assam
|
3
|
Cities in Border Area of J & K and NE states
|
|
88
|
Haflong
|
Assam
|
3
|
Cities in Border Area of J & K and NE states
|
|
89
|
Jowai
|
Meghalaya
|
3
|
Cities in Border Area of J & K and NE states
|
|
90
|
Lung-lei
|
Mizoram
|
3
|
Cities in Border Area of J & K and NE states
|
|
91
|
Mokukchung
|
Nagaland
|
3
|
Cities in Border Area of J & K and NE states
|
|
92
|
Belonia
|
Tripura
|
3
|
Cities in Border Area of J & K and NE states
|
|
Source: Ministry of Information &
Broadcasting, Government of India
|
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