The licences would be issued by the Wireless Authority of India for the usage of a particular spectrum and would be valid for a fixed period of time. Approximately 10 spectrums would be opened up for private broadcasters to run their own channels. The number of centres would, however, vary according to the commercial viability of running private FM channels in different centres, where AIR has already set up infrastructure for such broadcasting.

The government is, however, yet to take a final decision on how many such licences would be issued to a particular party. Sources said that the idea is not to allow more than one licence per centre. However, the government could also impose the same restrictions across centres.

It is believedthat the government would also be strict on the provision regarding "related companies" implying companies having common directors or directors related to the top brass of some other company.

The All India Radio (AIR) had cancelled the second open auction it had conducted for allotting airtime on its existing FM channel after it felt that a particular group was monopolising the airtime by bidding through separate companies.

On the subject of allowing 20 per cent foreign equity, sources stated the Union information and broadcasting ministry had, for all practical purposes, ruled it out.

The decision regarding foreign equity came in the wake of the provisions contained in the Broadcasting Bill, which does not allow foreign equity in terrestrial broadcasting, sources said.

They added that the government felt that the initial investment in infrastructure for FM broadcasting is quite low for which foreign participation could be avoided. Government also has to decide whether AIR's infrastructure could berented out to private broadcaster to run their channels. Earlier, private broadcasters were using AIR infrustructure to broadcast their individual programming.

Sources said that the decision had to be taken by Prasar Bharati board in this regard. The Prasar Bharati board had expressed its support for renting out Doordarshan transmission facilities to private channels. If AIR facilities were lying idle there should not be any problem regarding renting infrastructure to private radio broadcasters, sources added.