Government approves FM Radio Phase-III Policy guidelines amendments

The government on Tuesday approved the long pending amendments in the FM Radio Phase-III policy guidelines, which include simplification of financial eligibility norms in FM radio policy to allow companies with net worth of Rs 1 crore, instead of Rs 1.5 crore earlier, to participate in the bidding process for category ‘C’ and ‘D’ cities.

The amendments also include removal of the three-year lock-in for restructuring, and long-pending demand of the industry to remove the 15% national cap on channel holding.

The decision was taken in the last Cabinet meeting chaired by Prime Minister Narendra Modi last week.


Earlier, the FM radio companies were not allowed to restructure the management for at least 3 years during the license period of 15 years.

The government is of the view that the three amendments together will help the private FM radio industry to fully leverage the economies of scale and pave the way for further expansion of FM radio and entertainment to Tier-III cities in the country.

“This will not only create new employment opportunities but also ensure that music and entertainment over the FTA (free-to-air) radio media is available to the common man in the remotest corners of the country,” the government said in a statement.

Further, to improve ease of doing business in the country, the emphasis of the government has been on simplification and rationalisation of the existing rules to make Governance more efficient and effective so that its benefits reach the common man.