Ministry of I&B to hold mock e-auction on June 30 for 730 FM radio channels; 19 bidders pre-qualified
As part of Phase-III Batch-III expansion, Ministry of Information & Broadcasting has shortlisted 19 bidders, including DB Corp and HT Media, for 730 FM slots across 234 cities.
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The Ministry of Information and Broadcasting (MIB) has announced that a mock e-auction for 730 FM radio channels across 234 cities will be conducted on June 30, 2025, as part of the ongoing Phase-III Batch-III expansion of private FM radio services.
A total of 19 applicants have been pre-qualified to participate in the upcoming auctions. These include leading broadcasters such as DB Corp, HT Media, Rajasthan Patrika Pvt Ltd, Malar Publications, Sapphire Media Ltd, Malayala Manorama, and Mathrubhumi Printing and Publishing, alongside new entrants such as Lohchab Motor Co., Santamonica Tours & Travels, and Setwell Coatings India.
The mock auction will be conducted by MSTC Ltd., the designated auctioneer, using the Simultaneous Multiple Round Ascending (SMRA) format. This preparatory round aims to help participants familiarise themselves with the online bidding system, including the use of Class 3 Digital Signature Certificates (DSC), static IP configuration, and round-wise bid submissions.
The auction is a key part of the government’s push to expand private FM radio coverage in India and enable greater regional content dissemination. Successful bidders will eventually be allotted 15-year licenses upon completion of the formal bidding process.
The bidders have been shortlisted based on their Earnest Money Deposit (EMD) and Initial Eligibility Points (IEP). DB Corp’s Radio Division lead the list with the highest EMD of Rs 8 crore and 3,200 eligibility points, followed by other contenders including Sapphire Media (Rs 7 crore EMD, 2,800 points), Hello FM parent Malar Publications (Rs 4.31 crore, 1,723 points), FM Tadka of Rajasthan Patrika (Rs 4 crore, 1,600 points), and HT Media (Rs 3.75 crore, 1,500 points), for Fever FM and Radio Nasha.
In October last year, the Ministry invited applications for e-auctions to allocate 730 channels across 234 uncovered cities under the third batch of FM Phase-III radio channels. In August 2024, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the proposal to conduct the third batch of e-auctions for 730 channels in 234 new cities with an estimated reserve price of Rs 784.87 crore, under the Private FM Radio Phase III policy.
It was informed then that the auction will begin four days after the mock auction, and participants are required to make the first 25% payment within five calendar days, with the remaining balance due within 15 calendar days of the auction's conclusion and notification of successful bidders by the government.
Permission holders for a new FM radio channel in uncovered cities under the Batch-III FM Phase-III auction must pay an annual fee of 4% of the channel’s gross revenue for the financial year, excluding Goods and Services Tax (GST).
In April this year, the Ministry issued Amendment No. 1 to the Auction Rules (dated November 27, 2024) for Private FM Radio Batch III channels e-auction under Phase III. As per the new amendment, issued on April 9, the Ministry has extended the duration of each round in the Rank-wise Multiple Rounds allocation stage from 30 minutes to 60 minutes. This change aims to provide bidders with more time per round during the allocation stage, potentially facilitating a more considered bidding process.
The Ministry initiated the third batch of e-auctions under Phase III of the Private FM Radio policy, aiming to expand FM radio services to 234 previously uncovered cities by offering 730 new channels. The FM Phase III policy, approved by the Union Cabinet in 2011, seeks to enhance the reach of private FM radio across India. The first two batches of auctions, conducted in 2015 and 2016, resulted in the allocation of 163 channels across 104 cities. The current third batch focuses on cities that have not yet received private FM services, aiming to promote local content, generate employment, and provide diverse entertainment options.
Storyboard18 earlier reported that the third batch of phase-III FM e-auctions hasn't found many enthusiastic participants because of high reserve prices and the 9-year long hiatus. Many radio players will likely limit spending to 10% of previous levels.
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