FM Radio Frequencies Auction to Generate 500 Crore

New Delhi: The government expects to generate 500 crore from the first tranche of the Phase-III auction of FM radio frequencies, slated to be completed by the end of the year, a top official said.

"They (ministry of finance) have given us the estimates for the first phase, which is at 500 crore," Information and Broadcasting Secretary Uday Kumar Verma told reporters on the sidelines of an event here.

"We will complete the first phase by the end of this year."

According to Verma, the total revenue generation expected out of the three phases stand at 1,500 crore.

Up to May 31, 2011, the government had generated around 1,733 crore through the auctions of phase I and II, which included one time entry fee, migration fee and annual fee.

The phase III auctions would extend FM radio station services to 227 new cities, resulting in coverage of all cities that have a population of around one lakh or above.

Currently, phase I and II auctions cover 86 cities.

The government has proposed to raise non-tax revenue of around 1,600 crore from the auction of FM phase III in the union budget presented in the Lok Sabha by Finance Minister Pranab Mukherjee on March 16 last.