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Delhi FM goes for Rs. 7.12 crore

Zee-backed New Media Broadcasting, the Times of India group’s parent company Bennett Coleman and Company, Reliance-promoted Observer Network and Living Media group are among the eleven companies awarded the licence to operate FM radio stations in Delhi at a fee of Rs. 7.12 crore.

Bennett Coleman & Company also bagged Cuttack with a Rs 22 lakh bid. Cochin went to BPL-backed Indigo Radio for Rs. 2.25 crore while Chennai-based Sumangali Publications got the licence for Coimbatore at a fee of Rs. 3.35 crore. Other companies which bagged Delhi include Nimbus Communication, Mid Day Radio North India, Millimenium Delhi Private Limited, Hind Broadcasting, Hindustan Broadcasting, Music Broadcast and Dream Radio India. The minimum reserve price for Delhi was Rs. 1.25 crore. Of the 24 applicants in the fray, 19 pitched in.

The licence figure of Rs. 7.12 crore is highest till date after Bangalore went for Rs. 6.68 crore, followed closely by Chandigarh (Rs. 6.65 crore). In an earlier round of bidding, New India Broadcasting and Bennett Coleman and Company had bagged Ahmedabad for Rs. 2.55 crore.

The licences for the four cities were awarded by Ministry of Information and Broadcasting in an open auction. Single frequency was up for grabs at Coimbatore, Cochin and Cuttack. At Cuttack there was intense competition between Bennett Broadcasting. The minimum reserve price for the city was Rs. 20 lakh. For Coimbatore and Cochin the figure was Rs. 50 lakh.

The period of the licences will be for 10 years from the date of issue of the operational licence by the Wireless Coordination Committee. The licence amount is for the first year with a provision of 15 per cent increase every year. With today’s auction, a total of fourteen cities have been covered and a sum of Rs. 179.405 crore has been committed to AIR.

Sudipto Dey