If someone wants to open a commercial FM radio station in any city of India, how much does it cost and what is the procedure?

To open a commercial FM radio station in India, the process and costs are as follows:

Costs

The costs to establish a commercial FM radio station in India can vary significantly based on the city and the category of the city.

• For metro cities, the cost of obtaining a commercial FM license can range from approximately 75 to 90 lakhs (7.5 to 9 million) rupees1.
• For smaller cities or district levels, the cost can start at around 50 lakhs (5 million) rupees12.
• However, the total investment can go up to 25 crores (250 million) rupees, including all operational expenses, equipment, and other necessities2.

Procedure

Licensing and Approval

1. Obtain Consent from the Ministry of Information & Broadcasting (MIB):

   • The applicant must get approval from the MIB, which is the sole authority to grant FM licenses in India2.

2. Bid for Frequency:

   • The government auctions FM frequencies, and the applicant must bid on these frequencies. The reserve prices for these frequencies vary based on the city's population and strategic importance. For smaller cities, the reserve price can start as low as Rs. 5 lakhs23.

3. Financial Eligibility:

   • The applicant company must meet specific financial eligibility criteria, which include having a minimum net worth:
     • Rs. 50 lakhs for D category cities
     • Rs. 1 crore for C category cities
     • Rs. 2 crores for B category cities
     • Rs. 3 crores for A or A+ category cities
     • Rs. 10 crores for all cities in all regions2.

Setting Up the Station

4. Purchase FM Transmitter and Equipment:

   • After obtaining the license, the applicant needs to purchase the necessary FM transmitter, antenna, and audio equipment to start broadcasting2.

5. Operational Expenses and Yearly License Fees:

   • In addition to the initial costs, there are operational expenses and yearly license fees that need to be accounted for. These are part of the NOTEF (Non-refundable One-Time Entry Fee) and other recurring costs2.

Regulatory Compliance

6. Wireless Planning Commission (WPC) Approval:

   • The applicant must submit an application to the WPC for frequency allotment and pay the necessary spectrum charges2.

7. SACFA Clearance:

   • The applicant must also obtain SACFA (Standing Advisory Committee on Frequency Allocation) clearance for the proposed radio station4.

8. Grant of Permission Agreement (GOPA):

   • The final step involves signing the GOPA agreement with the MIB, which includes submitting a bank guarantee and other required documents4.

By following these steps and meeting the financial and regulatory requirements, one can successfully establish a commercial FM radio station in India.