Birth of private FM channels in India

‪@wdfindiaDelhi‬
In the earlier episodes, I described the events: Birth of AIR Resources in May 2001, Approval of cost norms by Ministry of Finance in July 2001, Birth of Gyanvani Channel by signing MOU with IGNOU in August 2001, MOU with BRPL for “Don’t dial 100, dial FM Radio station”, in Nov. 2001. In this fourth episode, I am describing about a very significant agreement signed between AIR Resources and all the Private Broadcasters in Dec. 2001. I will be using the word Agreement and not MOU, so I would like to clarify the difference. MOU is signed between two nations or two Government departments and Agreement is signed between two businesses with stricter enforceability.
After independence powers to broadcast was vested with the union of India under central Government. In 2001, it was liberalised and private sector was allowed to set up its own FM Radio stations. Government of India conducted open auctions for radio licenses in the year 2000 known as FM Phase I. Of the 108 licenses issued, only 22 became operational in 12 cities. Although Phase-1 was not very successful, it opened doors for Fm Phase-II conducted in 2005 and Phase-III started in 2015 and still inconclusive, with far reaching potential for earning revenue of Rs. 3233 crores by Ministry of I &B by auctioning frequencies, and 208 crores by AIR Resources.
For Private broadcasters in a city, it was made mandatory to collocate their transmission systems and they found using All India Radio or Doordarshan towers for their transmission system, the best bet for economical and quicker rollout. Since in FM broadcasting, the transmitter is located near the tower, as such the transmitters, and the transmission system such as multiplexers, cable and antenna panels all had to be located in Prasar Bharati premises for which the private broadcasters had to take on lease these facilities.
Since there were future plans to open the private FM broadcasting in different phases, it offered a great business opportunity with huge potential of profit of about 200 crores over a period of time. AIR Resources was quick to see the opportunity and decided to sign Agreements with all the broadcasters. There was a meeting in Ministry of I &B with Madam Sushma Swaraj in chair, attended by all the top officers of Ministry, CEO Prasar Bharati, Head AIR Resources and the Private Broadcasters. It was the 5th December 2001 and all the terms were discussed and settled. I would like to narrate an interesting anecdote. While coming out of Shashtri Bhawan, in the lift Mr. Baijal asked me when I was planning to sign the Agreements. I told him that the draft agreement was in law ministry for their approval and I was going to USA for inspection of some equipment and the Agreements could be signed in the 3rd week of December. Mr. Baijal told that Madam Swaraj wanted it to be signed next week and requested me to reschedule my USA visit after the signing of the agreements. He could not depend on any one in the department to get the job done in my absence. Next day morning, I went to Ministry of Law and met the Asst. Solicitor General and requested him to vet the agreement. First, he was a bit reluctant since he had a number of urgent files for Supreme Court cases to be cleared, but when I said that I was an engineer and draft was made by me and I wanted to learn from him my mistakes, he was amused and agreed to examine the agreement in my presence. He examined it clause by clause and taught me nuances & nugatory of legal terminology. He cleared it in my presence. It was a two hours class which was greatest learning of my life on legality of agreements. AIR Resources signed the agreements with all the private broadcasters on Monday, the 10th of December 2001. A great achievement and of course, my trip to USA had to be cut down from two weeks to one week. AIR resources signed several agreements most prominent was with MBPL for Lucknow, where an additional antenna could be placed on existing tower in AIR premises.

[@rinconnarayanan5900]

GREAT ❤