The Hindu Business Line : Industry welcomes new FM radio policy

Reacting to the new policy, Mr Abraham Thomas, COO, Red FM (part of Living Media Group), said, "We are very excited with the announcement. This will give the much-needed boost to this media. We are awaiting the details of the policy."

According to the Federation of Indian Chambers of Commerce and Industry (FICCI), "The policy initiatives are in line with the recommendations of the Committee set up the Government of India."

The Confederation of Indian Industry said that migrating to revenue sharing model and new licences would spread FM radio growth and activate private players to invest into the sector. "The Government's fresh radio package would energise the expansion of FM radio in the country. The regulatory corrections would result in more growth, more revenue, new employment across the country.''However, FICCI said that the Government should re-consider the broadcast of news and current affairs on a pilot basis in certain select areas for a period of one year. Once the confidence has been built that the players are adhering to the code of conduct, the same could be extended nationwide.

Our Mumbai Bureau reports: Responding to the Government's decision today of allowing 20 per cent FDI in private FM radio, Mr Ambar Basu, Vice-President (Finance), Music Broadcast Pvt Ltd, said in a statement, "We have heard about the announcement of a new FM Radio Policy today and are awaiting the full details of the announcement. Based on media reports, it has been reported in a section of the business press that the new policy may include migration to a revenue share arrangement and multiple licences may be available in individual markets.

"These are welcome decisions and would certainly give a fillip to the industry, which has been experiencing severe financial difficulties in the prior licensing arrangement, constraining investment into business building in what is a nascent industry. Multiple stations in cities will certainly help towards delivering more segment relevant programming to targeted audiences in a local area.

"We will await a full reading of the government's policy before commenting any further on this," Mr Basu said.

Music Broadcast Pvt Ltd is the promoter of Radio City. GW Capital owns 75 per cent equity in the company. Radio City has FM radio operations in Mumbai, Delhi, Lucknow and Bangalore. It is the sole operator in Lucknow and Bangalore.

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