The Ministry of Information and Broadcasting has invited applications for e-auction of the first batch of FM radio Phase III channels. The first batch of FM Phase III comprises 135 channels in 69 existing cities of Phase II. The last date for submission of applications is March 23, 2015. 

The auction process will start on April 24, 2015. A mock auction is to be held 4-5 days after the pre-qualification of bidders on April 17. The auction will start one week after pre-qualification of bidders.

The government has held that no entity shall hold permission for more than 15 per cent of all channels allotted in the country, excluding channels in the cities located in Jammu and Kashmir, the North Eastern states and Island Territories, where only city wise cap will apply.

In respect of existing license, permission, it shall be taken into consideration for calculating the 15 per cent limit. The nationwide 15 per cent cap would be applied at the time of allocation of the FM channels.

Every applicant shall be allowed to run not more than 40 per cent of the total channels in a city, subject to a minimum of three different operators in the city.

A simultaneous multiple round ascending e-auction process would be carried out for allotting the FM channels, to be conducted over the internet. Bidders would be able to access the Electronic Auction System (EAS) on the web. 

With regards to cap on foreign investment, permission would be granted only in cases where equity held by the largest Indian shareholder is at least 51 per cent of the total equity, excluding the equity held by scheduled banks and public financial institutions. The total direct and indirect foreign investment shall not exceed 26 per cent at the time of application and during the currency of license.

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