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New Delhi, Jan. 4

THE Government could mop up as much as Rs 1,350 crore as One Time Entry Fee (OTEF) in the second phase of FM radio privatisation, according to a study carried out by consultancy firm Big River Radio (India).

The government has invited bids for licences for 338 FM radio stations in 91 cities. The OTEF is nearly half of the total investment of Rs 2,600 crore that phase II of the FM licensing will attract. Additionally, the government could earn revenue of over Rs 50 crore every year through the 4 per cent revenue share.

The report has estimated that successful bidders would have to invest Rs 1,200 crore on transmitters, studio equipment and common transmission facilities essential for the mandatory co-location. While around 90 per cent of the equipment will be imported, mostly from the US and Europe, operators will use Prasar Bharti land and towers in 84 cities for co-locating transmitters.

"The public service broadcaster is likely to earn Rs 70 crore for these services to the private sector," it said.

(This article was published in the Business Line print edition dated January 5, 2006)
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