Information and broadcasting minister Pramod Mahajan told reporters that the entry of private broadcasters would be restricted to music, entertainment and education-based programmes. They would not be allowed to broadcast news and current affairs programmes.

Licencees would be issued one non-transferable licence per centre for 10 years. This implies that only one frequency at a particular centre would be leased to an operator.

The private broadcasters would also be allowed to broadcast programmes related to business, capital market, airlines/ railway/ bus, traffic, sports and weather.

The licences would be issued under the Indian Telegraph Act, 1885 and Indian Wireless Telegraphy Act, 1933.

The licencee shall follow the programming and advertisement standards andcodes as followed by the Prasar Bharati, the policy adds.

Mahajan stated that the quantum and modalities of the licence fee/guarantees to be paid by the licencee shall be as determined by the government.

Suitable parameters will be evolved to evaluate the technical, managerial and financial competence of the applicants at the time of inviting applications, he added.

Significantly, only 100 per cent Indian companies and other legal entities with no foreign equity would be permitted to apply for such a licence. Apart from the commercial broadcasters, frequncy would be leased to NGOs, educational institutions and for community services.

The policy states that all the private players are to make investments in setting up their studios and transmitters. The government has decided on a capital adequacy norm at Rs 3 crore for capital investment and Rs 2 crore for working capital per station. The government may, however, vary the conditions of the licence by giving the licencee a reasonable opportunity ofbeing heard, the policy adds.

Significantly, the channel identity would have to include the frequency. The brand name to be used must be the same as indicated in the application and can only be changed with the prior approval of the licencing authority.The government will not allow any networking on the part of the broadcasters. Networking of local or regional broadcasting services shall be permitted by the government only for events of national or regional importance. The licencees would have to seek prior approval of the government for such services.

Once an operator is leased a frequency it cannot be leased out any further. However, value-added services on sub-carriers as radio data system and data radio channel would be allowed except for news or news-based information.The policy further states that though the licencees will operate under the I&B ministry, licensing will be subject to the condition that as and when any regulatory authority to regulate and monitor the broadcast services in the countryis constituted, the licensees will have to adhere to the norms, rules and regulations prescribed by such authority.

Various centres in which FM broadcasting will be allowed have been categorised into A+, A, B, C and D categories. In the four metro cities categorised under the A+ and A categories, 48 private FM channels would be allowed. In the other centres under the A, B, C and D categories, 101 frequencies would be leased for private participation in FM broadcasting.