Monday, August 8 2005 15:03 Hrs (IST) - World Time -

New Delhi: Radio culture is being revived in the country with as many as 336 new radio stations likely to be set up in 90 cities soon, Information and Broadcasting Minister Jaipal Reddy told the Rajya Sabha today (Aug 8, 2005).

Replying to supplementaries during Question Hour, Reddy said the Government would opt for revenue sharing pattern for private radio stations.

The Government had notified the policy for expansion of FM Radio (Phase-II) through private sector, he said adding this provided for setting up of FM radio stations in 90 cities.

Reddy said a total of 22 private FM channels were operationalised under Phase-I and one of them closed down in April last year.

He said FM operators had cited high license fee as one of the reasons for unsustainability of their operations.

Reddy said having learnt from the earlier experience, the Government was going in for revenue sharing formula for private players in the second phase and 'this will encourage revolution of radio in the country'.

In reply to a query, Reddy said private radio stations were not allowed to broadcast news and other current affairs programmes.

On the equity pattern, Reddy said Foreign Direct Investment (FDI) and Foreign Institutional Investors (FII) ceiling would be limited to a maximum of 20 per cent for private radio stations and Indian companies will have equity of up to 80 percent in the venture.