Sources said that the broadcasters may be allotted individual frequencies to run their own channel rather than having slots on the same channel.

The ministry decided to step in to break the deadlock on private broadcasting on FM channel. AIR had decided to keep 24 hours of FM broadcasting to itself while auctioning another 24 hours to private broadcasters.

This would be the first constructive move on FM broadcasting since former Prasar Bharati member-secretary SS Gill called for an out-of-court settlement with some of the broadcasters, who moved court against AIR after it conducted an open bidding for slots on the FM channel.

Significantly, the last bidding conducted by AIR was stayed by the Monopolies andRestrictive Trade Practices Commission (MRTPC) after Laxmi Papermart and Raghuvar India filed complaints against AIR.

Previously, AIR had conducted two bids for the same allotment which were, however, null and void following legal tussles with some of the bidders.Following the stay order, almost all private broadcasting on FM frequency went off air and, AIR decided to go on its own with entertainment programmes on that band.

Sources said the fate of FM broadcasting would depend on whether the broadcasters are willing to withdraw their cases against AIR or not.

They felt that the ministry has taken up the subject with a positive frame of mind as I&B minister Pramod Mahajan's agenda includes transforming the country into the biggest media hub of South Asia.

The last bid conducted by AIR received warm response. The bids for prime-time slots ranged from Rs 22,000 to Rs 37,000 per hour. Earlier, the ministry had decided to amend the conditions regarding foreign equity for the bidders. From 20 per cent itwas scaled down to zero as the I&B ministry felt that no foreign equity should be allowed in terrestrial broadcasting.

In case the issue of FM broadcasting is solved the credit would definitely go to Mahajan. He has already given a big push to Doordarshan by concretising its exclusive sports channel plans.

Mahajan had earlier stated that he is in favour of substantially improving the revenue position of DD and AIR through proactive means.