NEW DELHI : The Indian FM radio sector may be in for some good news. The buzz doing the rounds in New Delhi is that the the Union Cabinet is reportedly positively inclined to hike the foreign direct investment limit in FM radio from 20 per cent to 26 per cent. The Cabinet has to reach a consensus on this decision, but the Committee of Secretaries (CoS), headed by the Cabinet Secretary, had agreed to the increase earlier this month. Its recommendation has now been forwarded to the Cabinet.

Says a media observer: Normally when the CoS clears a proposal, the Cabinet gives its consent. So we expect the Cabinet approval to come within a month and the increase to be notified in the gazette soon thereafter."

The Telecom Regulatory Authority of India had in late June recommended foreign investment limits for FM radio to be 26%. Interestingly, it had in January recommended FDI of 49% in the consultation paper, but reduced it to 26% in the final report.

The current foreign investment limit in FM radio stands at 20%.

It is also learnt that to prevent any chances of corruption, FM radio frequencies may be sold via an e-auction according to the CoS recommendation.