The Hindu : Changes in FM broadcasting policy suggested

Online edition of India's National Newspaper
Tuesday, Nov 18, 2003

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Changes in FM broadcasting policy suggested

By Our Special Correspondent

NEW DELHI NOV. 17. The FM task force set up by the Information & Broadcasting (I&B) Ministry has sought to place radio in line with television by suggesting that private FM radio stations be allowed to air news and current affairs programmes provided they subscribe to the Code of Conduct applicable to All India Radio which has a monopoly on news programming as of date.

Headed by the secretary-general of the Federation of Indian Chambers of Commerce and Industry (FICCI), Amit Mitra, the 10-member task force — set up in July this year to chart a course for the second phase of FM broadcasting in the country — submitted its report to the Union Minister of State for I&B, Ravi Shankar Prasad, today.

Should the Ministry accept the recommendations — partially or in toto — then Cabinet approval would have to be sought as the task force has recommended "far-reaching'' changes in the existing policy.

Favouring FDI up to 26 per cent in FM broadcasting — be it news or entertainment — the task force has recommended "safeguards'' akin to those applicable to newspapers and news channels with foreign investment.

In the case of radio stations with news programming, "75 per cent of the directors of the licensee, the Chief Executive Officer of the licensee and/or head of the channel, and all key executives and editorial staff of the channel must be resident Indians appointed by the licensee without any reference on or from any other company''.

In the case of entertainment channels with foreign participation, an exception to these provisions has been suggested if the persons concerned are `People of Indian Origin' cardholders/Non-Resident Indians. But, this exception is only in the case of key executives and editorial staff; not directors or chief executive officers. Also, as with newspapers and news channels having foreign investment, the equity held by the largest Indian shareholder group should be at least 51 per cent of the equity excluding the share held by public sector banks and public financial institutions.

With only 23 stations operational across the country out of the 101 channels allocated in the first phase of FM broadcasting through private agencies, the task force has advocated a change in the licensing process and revenue sharing arrangement as the current policy on these counts have been identified as the major reasons for the slow proliferation of radio.

As for revenue sharing — the bane of those running FM stations today — the recommendation is for a telecom-style arrangement wherein four per cent of the gross revenue goes to the Government with the proviso that the quantum that can be reviewed every five years.

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