The government has set up an inter-ministerial group to examine the Amit Mitra Committee recommendations on relaxing the guidelines for FM radio.
The group has representatives from the ministries of information and broadcasting, law, human resources and finance.
The panel will examine the committee's report and prepare the final recommendations. The recommendations would then be submitted to the Cabinet for its approval, said sources.
Information and broadcasting ministry sources pointed out that the group had been set up as the government felt that the policy contained far-reaching changes and, therefore, required a wider consensus.
Besides, the group is also expected to work out issues such as releasing additional spectrum for the use of FM radio companies.
"There are various issues where the working of different ministries is involved. The inter-ministerial group would find a way out of these issues as well," said a government source.
The Mitra committee had recommended a 26 per cent foreign investment in FM radio companies as well as allowing the broadcasting of news and current affairs programmes on private FM radio stations.
Taking a divergent view from that held by the government in most of its suggestions, the committee also recommended allocation of multiple licences in the same city, permission for networking by the same broadcaster on several stations and removal of the co-location condition for making this sector viable.
The committee had also recommended a revenue sharing arrangement along with an entry fee for private operators in FM broadcasting instead of the fixed licence fee regime and a pre-qualification round to adjudge the viability of bidders.
The Mitra panel had also recommended that players wanting to enter the sector in the second round of licensing must have a technical viability clearance by a financial institution on the financial viability of the project.
Also, for migration to the new regime, the committee had come out with a cut-off date of July 24, 2003 while recommending that bidders not be blacklisted for new licences on the basis of their default in the first phase.
In the case of acquiring multiple licensing in the same city, the committee had suggested certain riders, where in the number of frequencies an entity, directly or indirectly, may hold in a particular city would be restricted to 3 or 33 per cent of the total licences available.
Radio gaga
- Central panel to examine Mitra committee's report.
- Additional spectrum for FM radio firms to be considered.
- Mitra committee had recommended a 26 per cent foreign investment in FM radio firms.
- Mitra panel took a divergent view from that held by the government in most of its suggestions.
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