NEW DELHI: The government hopes to earn revenue of about Rs.15.3192 billion from the auction of 839 FM channels in Phase III in 294 cities.

Information and Broadcasting (I&B) Minister Manish Tewari told Parliament during question hour today that the government will conduct the auction by ascending e-auction for award of licences. He said the estimate of revenue was based on the reserve price.

Government has already approved the policy guidelines in Phase III on expansion of FM radio broadcasting services through private agencies.  The detailed policy guidelines for FM Phase-III are available on the Ministry’s website.

Earlier in March, I& B Secretary Uday Kumar Varma had said the auctioning of the channels would be completed within a year.

The EGoM had also discussed issues related to spectrum auction. The Phase I and Phase II auctions had earned revenue of about Rs 17.33 billion up to 31 May 2011 from one time entry fee, migration fee and annual fee, among others.

After the auction, all cities having a population of more than 100,000 will be covered by private FM radio services. 

Presently 86 cities are covered by 245 FM radio stations.

The Ernst and Young (E&Y) in a report based on discussions with stakeholders had opposed ascending e-auction on the ground that the licence fee will increase manifold.

As earlier announced, FM channels in Phase III will be permitted to broadcast All India Radio news on ‘as is where is’ basis.