FM radio stations have sought 90 days more to pay their licence fees. The information and broadcasting ministry had set April 14 as the deadline.
After talking to the FM channels last week, the ministry said it could consider moving to revenue sharing. Before that, the ministry will study the finances of the stations, which claim their business is not viable.
Analysts say radio has potential for growth, given the advantages of mass programming. It is also a big platform for cheap advertising.
The high fees have come about because there was no deterrent against speculative bids in the auction of frequencies.
Each station pays the government a fee of Rs 10 crore (Rs 100 million) a year. There is also a 15 per cent annual escalation clause.
The government has announced another round of frequency auctions based on revenue sharing. According to a KPMG report, the government is understood to have finalised plans for the second phase.
Frequencies in 75 cities are to be auctioned and the frequencies in 25 cities of those auctioned in the first phase will be added to the list.