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The government on Wednesday approved the roll-out of 730 FM radio channels in 234 new cities and towns with an estimated reserve price of Rs 784.87 crore. 

Many of the approved cities and towns are in ‘Aspirational Districts’, left-wing extremism (LWE)-affected areas and border districts, and FM radio channels in these areas will further strengthen the government outreach in these areas.

The Cabinet greenlighted the proposal for the third batch of ascending e-auctions for 730 channels under the ‘Private FM Radio Phase Ill Policy’.

The move is also set to boost local content in mother tongue and create new employment opportunities

The Cabinet also approved the proposal to charge annual license fee (ALF) of FM channel as 4 per cent of gross revenue, excluding goods and services tax (GST), which will be applicable for 234 new cities and towns.

“The FM radio rollout will fulfil the unmet demand in new cities and towns, which still remain uncovered by the private FM radio broadcasting and bring new and local content in mother tongue,” said the government.

The move will also lead to creation of new employment opportunities, boost to local dialect and culture and ‘vocal for local’ initiatives.

There are nearly 400 private FM radio channels functioning in the country. Last year, the Ministry of Information and Broadcasting (I&B) reportedly started working on a proposal allowing private FM radio channels to broadcast news.

The Telecom Regulatory Authority of India (TRAI) has also made several recommendations related to FM radio broadcasting in the recent past.

Last month, Information and Broadcasting Minister Ashwini Vaishnaw inaugurated India's 500th community radio station at the Indian Institute of Mass Communication (IIMC) in Aizawl, Mizoram.

This milestone in India's community radio journey will bring a substantive change in the lives of people in the coverage area of Apna Radio station, said Minister Vaishnaw.