Private FM operators favour higher FDI cap

The Association of Radio Operators for India (Aroi) is understood to be in favour of an  increase in the foreign direct investment (FDI) limit to 49% from the current 26%, as proposed by the panel led by Arvind Mayaram, secretary, Department of Economic Affairs.

The Aroi governing body, in a meeting on Friday deliberated on the panel’s suggestions ahead of the inter-ministerial group’s meeting next week.

An industry source said the deliberations were not yet over and the matter has been opened to voting. “There is overwhelming support for increased FDI. The ministers will be consulting with leading industry layers on Saturday, post which, the matter will get discussed by the inter-ministerial group early next week,” said the source.

Officials of My FM, Radio City and BIG FM could not be reached for comments.
“It is a bit early to make a concrete statement considering the matter is still being discussed. Aroi has not gone official with its views. We’ll have to study Aroi’s stance and take a call on our approach accordingly,” said a top official of one of the big five private radio companies.

In May, the Union Cabinet had approved the EGoM’s decision to auction 839 channels in 294 cities as part of the third phase of private FM radio. The new FM radio frequencies will be opened for cities with a population above one lakh.
Currently, 86 cities are covered by FM radio services.