FM Radio auctions to begin this month; MIB issues GOPA for Phase III Batch III

New Delhi: The Ministry of Information and Broadcasting (MIB) has released the Grant of Permission Agreement (GOPA) for private FM broadcasters selected under Phase III, Batch III of India’s FM radio expansion. 

This marks a crucial next step in operationalising the 730 FM channels across 234 cities, for which online auctions are scheduled to begin later this month.

Speaking at the Broadcast Engineering Society Expo on Thursday, I&B Secretary Sanjay Jaju said the private FM radio sector is gaining momentum. “There are a lot of gains being made in private FM radio. The auctions are slated to start this month, and I’m confident they will see strong participation,” he said. 

Over 20 companies have submitted bids under the Private FM Radio Phase III policy.

The Union Cabinet, chaired by Prime Minister Narendra Modi, had approved the third batch of e-auctions in August last year, with a reserve price of Rs 784.87 crore. 

The Ministry invited applications in October 2023, followed by an amendment to auction rules in April 2024, which extended the duration of each bidding round from 30 to 60 minutes to allow for more informed decision-making.

The GOPA document, now available on the Ministry’s website, outlines the legal, financial, and operational framework under which successful bidders will operate their FM radio stations. 

Selected broadcasters must sign the agreement within six months of receiving the Letter of Intent (LOI), failing which their allotment may be cancelled.

Key provisions of the GOPA:

• Permission period: Each license is valid for 15 years from the date of operationalisation.
  
  
• Non-transferability: The permission is non-transferable, except with prior approval from the Ministry.
  
  
• Financial commitments: Broadcasters must furnish a Performance Bank Guarantee and adhere to the financial terms detailed in the Notice Inviting Applications (NIA).
  
  
• Operational deadline: Stations must commence broadcasting within 18 months of signing the GOPA.
  
  
• CTI requirement: Licensees must establish or share Common Transmission Infrastructure (CTI) as per government specifications.
  
  
• Programming & advertising: Broadcasters must comply with Programme and Advertisement Codes. News and current affairs content is prohibited unless specifically authorised.
  
  

The Phase III Batch III auction has drawn participation from prominent radio networks, including DB Corp, HT Media, ENIL (Entertainment Network India), and Sapphire Media. 

In total, 19 pre-qualified bidders are competing for frequencies across Tier-II and Tier-III markets. 

This phase aims to significantly boost radio penetration, particularly in semi-urban and rural areas.