A written assurance in the matter has been given by the Broadcast Engineers Consulting India Ltd (BECIL)the government enterprise responsible for creating the common transmission infrastructure (CTI) in the 91 cities offering 270 stations in the second phase of FM radio expansion.
As per the agreement, all private FM radio companies had to collectively pay over Rs 250 crore in advance to BECIL for creation of CTI in addition to over Rs 1,500 crore paid as license fee to the government in FM-II. But there was no definite deadline for the completion of the transmission towers essential for launching FM radio transmission.
Without CTI, we cannot launch over stations. Each FM company has made big investments which can not be recovered unless we launch our stations, a senior executive in FM radio company said.
According to industry estimates, over Rs 2,500 crore of investment has already gone into the FM radio business that currently generates revenue of only Rs 330 crore.