The Hindu Business Line : Finance Ministry views sought on FM radio licence fee deferment

THE Information and Broadcasting (I&B) Ministry has sought the views of the Finance Ministry on whether to defer the payment of the annual licence fee by the private FM radio companies.

Senior Government sources said that the I&B Minister, Mr Ravi Shankar Prasad, has written to the Finance Minister, Mr Jaswant Singh, on this and a response is expected in the next few days. FM companies have to pay their annual licence fee by April 29. Failing to do so, the I&B Ministry could take the channels off air or cancel the licences.

Some of the private FM licence holders have been asking the I&B Minister to defer the payment of licence fee of over Rs 100 crore for the four metros till a decision on switching to a revenue-sharing arrangement is taken.

However, with elections being held across the country, it would be difficult for the Government to take a decision on the postponement of payment of licence fee, as it would require the approval of the Cabinet. The views of the Election Commission would also have to be sought, said sources.

The Telecom Regulatory Authority of India, which is also the broadcast watchdog, had also earlier recommend that FM companies be allowed to defer payment till the new policy on FM radio is finalised. A committee under Dr Amit Mitra, Secretary General of the Federation of Indian Chamber of Commerce and Industry, has already submitted its report to the Government.

The private radio operators have been pleading with the Government to allow migration from a licence fee regime to a revenue sharing arrangement. But the Government is yet to scrutinise financials of these companies before taking a decision.

In a related eventEntertainment Network (India) Ltd, part of the Times Group, has filed a petition in the Bombay High Court seeking a stay on encashment of bank guarantees.