New Delhi: The government on Tuesday said it expects to garner Rs 1,500 crore in revenue from the auction of FM Radio Phase III license, for providing services in 227 cities, in addition to 86 cities covered currently.
“Total revenue expectation from three phases of (Phase III) FM radio auction is Rs 1,500 crore.
They (Finance Ministry) have given estimates for first phase, which is Rs 500 crore,” Information and Broadcasting secretary Uday Kumar Verma told reporters on the sidelines of the CASBAA India Forum 2012.
“The auction will be conducted in phases. We will complete first phase by the end of this year,” Verma said.
The Phase I and Phase II auctions led to total revenue accrual of about Rs 1,733 crore up to 31 May 2011 by way of one time entry fee, migration fee and annual fee among others.
The Phase-III license would extend FM radio services to about 227 new cities, in addition to the present 86 cities, and would result in coverage of all cities with a population of one lakh and above through private FM channels.
In its budget proposals for 2012-13, the government said last week that it had estimated to raise non-tax revenue of Rs 1,600 crore from auction of FM phase III license, but this auction have not materialised so far in this financial year, ending 31 March 2012.