Govt to stick to FM licence fee deadline

The government has decided not to extend the deadline for the payment of annual licence fee by private FM radio companies. The information and broadcasting ministry will also postpone any decision on the Amit Mitra committee recommendations.

According to officials, a decision on licence fee or the FM radio panel suggestions will be a violation of the model code of conduct for the general elections.

Private FM radio companies had last month sought an extension of the April 29 deadline for the payment of licence fee. The Amit Mitra committee has suggested a changeover from the present licence fee regime to a revenue share method. It has pegged the revenue share at 4 per cent of the gross revenue.

Under the existing regime, the licence fee is determined by an auction process. The fee escalates 15 per cent every year. For example, the annual licence fee for the Delhi circle in the first year was Rs 7.18 crore, and it would go up 15 per cent this year. FM radio industry sources said some of the companies had communicated to the government that if the high licence fee continued, they would soon be out of business.

"We have communicated to the government that the deadline should be extended and a policy decision is awaited," an industry source said.

The government is yet to take a view on the Amit Mitra committee report, which was submitted in November last year.

The fate of the recommendation in the immediate future is uncertain as the government will not take any new polity decision till the elections are over.

Private FM radio companies have told the government such a steep license fee is not viable and most of the companies are not even making enough money to pay the license fee.

The companies have also petitioned the government saying the restrictions on content and advertisements are hindering the functioning of the companies.