Private FM Radio operators with net worth ranging from ₹50 lakh to ₹10 crore, depending on the category of the city and town, are eligible to participate in the latest round of auctions. However, companies controlled or associated with a religious body, political body, a non-profit organisation or an advertising agency are not eligible.

The eligibility criterion has been defined in the information memorandum for e-auction put out by the Ministry for Information and Broadcasting. This came after the Cabinet gave its nod for conducting FM Phase III auctions for these channels and migration/renewal of Private FM Radio licences from Phase II to Phase III.

In the first batch, the Centre has decided to auction up to 135 channels in the existing 69 cities that came under Phase II but have vacant or additional channels available. The cities include Delhi, Chennai, Mumbai, Bengaluru and Hyderabad. “Auction of additional channels that may become available due to reduced channel spacing to 400 KHz could be considered after the feasibility studies are completed,” the Ministry said in its memorandum.

AIR news bulletin

Besides, private FM Radio operators will be allowed to broadcast news bulletins of All India Radio in unaltered format on terms and conditions mutually agreed with Prasar Bharati under the Phase III auction policy. They, however, are not allowed to relay any other news and current affairs programmes.

The Centre said the reserve price for new channels in the existing Phase II cities shall be the highest bid received for that city in Phase II, it added.

The auction will be conducted in four stages. While in the first, prospective bidders will be invited to submit their applications, in the second, applications will be screened for eligibility conditions and prequalification tests will be done.

Bidders that meet the prescribed eligibility criteria in the phase 2 stage will be invited to the auction stage for bidding for specific channels in different cities.

The fourth stage will be the one where Letter of Intent will be issued subject to fulfilment of relevant conditions and payment of the winning bid amount.

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