BBC tunes in to FM radio

OUR BUREAUMumbai, Nov. 21:
BBC Worldwide, the commercial arm of Britain's publicservice broadcaster, has filed an application with the Foreign InvestmentPromotion Board (FIPB) seeking permission to establish and operate an FMradio station in Mumbai.The application was filed on November 14, just three days before thegovernment cleared a proposal permitting 20 per cent foreign investment inthe FM radio business.The rider attached is that the 20 per cent cap will include foreign directinvestment (FDI), investments by non-resident Indians and persons of Indianorigin (PIOs) and portfolio investment.Until now, foreign investment of up to 20 per cent was permitted in radiounder the Portfolio Investment Schemes under the Foreign Exchange Management(Transfer or Issue of Security by a Person Resident outside India)Regulations, 2000 while FDI was not permitted.The rules have now been changed in the light of a changed scenario even asthe government prepares to launch the second phase of the FM radiobroadcasting services.BBC Worldwide hasn't said in its application who it intends to partner inthe FM radio business.Last December, BBC Worldwide signed an arrangement with Bennett and ColemanLtd, publishers of Times of India and Economic Times, to publish the 29magazines in the Times' stable, including Femina and Shipping Times through a 50:50 venture called Worldwide Media.The Times group has a FM radio venture called Radio Mirchi, which operatesin seven cities, including Mumbai and Calcutta.However, it is not known whether BBC Worldwide will pick up a stake in theventure or find another partner.Radio Mirchi is planning to come out with an initial public offering, whichwill be the first by a FM station. It has already filed a red herringprospectus with the Sebi.The company plans to offer 12 million shares with a face value of Rs 10 eachat a premium to be decided through a book-building process. The book-runninglead managers to the issue are JM Morgan Stanley Ltd and Enam FinancialConsultants Pvt Ltd.
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