A meeting of the Cabinet chaired by Prime Minister Manmohan Singh also approved hiking of foreign investment limit on private FM radio broadcasting company to 26 per cent from the current 20 per cent. 
Special 
A meeting of the Cabinet chaired by Prime Minister Manmohan Singh also approved hiking of foreign investment limit on private FM radio broadcasting company to 26 per cent from the current 20 per cent. The government on Thurday clearedguidelines of the much-delayed FM Radio Phase III expansion that will allowprivate radio channels to broadcast news of All India Radio and enable revenuegeneration of Rs 1,733 crore from the auction of license for services in 227cities.
A meeting of the Cabinet chaired by Prime Minister ManmohanSingh also approved hiking of foreign investment limit on private FM radiobroadcasting company to 26 per cent from the current 20 per cent.
"The FM Phase-III policy extends FM radio services toabout 227 new cities, in addition to the present 86 cities with a total of 839new FM radio channels," Information and Broadcasting Minister Ambika Sonisaid.
She said the FM phase III policy will result in coverage ofall cities with a population of one lakh and above through private FM channels.
"Through the auction of license of the FM Phase IIIexpansion, the government is expecting Rs 1,733 crore of income," shesaid.
The Phase I and Phase II policies have resulted in a totalrevenue accrual of about Rs 1,733 crore up to May 31, 2011 by way of one timeentry fee, migration fee and annual fee among others.
Soni said the private FM channels will now be allowed tocarry news items from AIR. Earlier they had not been allowed.
Asked why news from agencies has not been allowed to bebroadcast when even AIR is also sourcing from newswires, she said "I don'trule it out. When greater liberalisation takes place in time to come, it may beconsidered. It depends on what various ministries say and how the systemfunctions."
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