Radio channels auction phase-III likely to bring $390 million: Venkaiah Naidu

Union minister M Venkaiah Naidu has said that the Phase-III of radio channels auction, which started in July last year, is likely to bring in an estimated $390 million revenue to the government. He expressed the hopes to get as much money as possible from the second round of auctions as there are 14 competitors for auction. He added that with over 800 frequencies up for auction in third-and fourth-tier towns (in 294 cities) radio is likely to match the reach of print.

Union minister further said that the industry is poised to witness a phenomenal growth opportunities which would primarily be seen after the second batch of the Phase-III auction for 266 FM channels in 92 cities. Of total, the 227 channels will be auctioned for 69 fresh cities, while 39 in the existing 23 cities. He also said that the government will join hands and work with industry to achieve the ambitious target of taking the Indian M&E (media and entertainment) industry to $100 billion in next five to Seven years. The Minister said Indian share of the world M&E market is less than 1 per cent in the $3 trillion global media and entertainment market.

The pre-qualified bidders for e-auction of second batch of private FM Radio Phase-III channels are Abhijit Realtors and Infraventures Pvt Ltd, Dharmik Infomedia Pvt Ltd, Entertainment Network (India) Ltd, Hotel Polo Towers Pvt Ltd, JCL Infra Ltd, Kal Radio Ltd and Malar Publications Pvt Ltd. Apart from these, Purvy Broadcasts Pvt Ltd, Rockstar EI Pvt Ltd, Sambhaav Media Ltd, South Asia FM Ltd, The Malayala Manorama Company Ltd, The Mathrubhumi Printing & Publishing Company Ltd and Ushodaya Enterprises Pvt Ltd are the other pre-qualified bidders.

Naidu also said that the country's M&E sector had always been a very liberal media market and a number of initiatives had been taken-including opening up and liberalizing foreign direct investment (FDI) in the broadcast sector. In a lighter vein he said FDI means ‘First Develop India’.