NEW DELHI, OCT 30: As the deadline for submitting bank guarantees for setting up private FM stations ended on Monday, the government could collect only 40 per cent of what it had expected. The notable defaulters included the Zee group's New Media Broadcasting Co Pvt Ltd with 29 circles, Reliance's Observer Network with 9 circles and Nimbus Communications with three. To salvage the situation, the government is already thinking of going in for another round of bidding for various FM circles, particularly untapped ones.According to a senior official in the information and broadcasting ministry, the government has collected Rs 158.74 crore as the first year's license fee for allowing private parties to set up FM stations in various circles. This is just 40 per cent of Rs 425.03 crore - the amount expected by the government for allotting FM licenses for the first year of operations.Even as the government kept its doors open for successful bidders till 6 pm on the cut-off day (Monday), only three - Hitz FM Radio, Vertex Broadcasting and India FM Radio deposited their bank guarantees on the last day. Bennett & Coleman, which had earlier paid for 11 out of its 12 circles also paid up for its last circle, Lucknow. Significantly, the Dabur group's Vertex Broadcasting signed for only four out of the six circles that it had bid for. Vertex dropped Chennai and Hyderabad due to the high bid price.As per the final tally, only 16 out of 28 companies have signed the FM agreement. The companies to sign the deal are Bennett & Coleman, Hitz FM Radio, India FM Radio, Radio Today (Calcutta), Radio Today (Delhi), Radio Today (Mumbai), Mid-Day Radio North, Mid-Day Broadcast South, Radio Mid-Day West, Millennium Delhi Broadcast, Millennium Chennai Broadcast, Millennium Mumbai Broadcast, Music Broadcast, Sun, Udaya and Vertex Broadcasting.The defaulters included New Media Broadcasting, Observer Network, Nimbus Communications, Bollywood Broadcasting, Dhun Radio, Dream Radio, Hind Broadcasting, Indigo Radio, Kismat Radio, Magic Radio, Modi Entertainment Network and Neffs India. The government has notched up a total of Rs 17.97 crore from the defaulters. The tender document for FM license contains a clause which says that a defaulting company will have to forfeit 50 per cent of the reserve license fee. The forfeited amount, in this case, adds up to Rs 17.97 crore.Apart from that, three companies have not been issued the letters of intent yet as they haven't been granted clearances by various departments. These companies are Raj Telefilms, Suraj Broadcasting and Hindustan Broadcasting.According to government sources, those circles which have been left untapped by private operators for setting up FM stations, will be thrown open for re-auction. The untapped circles include Cochin, Jalandhar, Guwahati, Agra, Allahabad, Aurangabad, Chandigarh, Kanpur, Ludhiana, Madurai, Mysore, Panaji, Raipur, Rajkot, Shillong, Trichy, Trivandrum, Varanasi, Srinagar and Jamnagar.Zee moves HC for refundThe first hearing of the court case involving the Zee Group's New Media Broadcasting Co Ltd and the Union government came up in the Delhi High Court on Monday. New Media had recently moved court against the government demanding a refund of advance money worth Rs 7 crore.The case was adjourned till November 1, according to an I&B official. The official said that contentious clauses were removed from the tender document as per the request made by several companies including New Media. "Now they are demanding a refund of the advance money." The government will of course defend itself, he said.
