British broadcaster BBC has proposed to pick up an equity stake in a Mumbai-based private broadcaster Radio Mid-Day who run an FM radio station.

According to government sources, BBC Worldwide Ltd’s proposal envisages picking up to 20 per cent equity stake in Radio Mid-Day.

Interestingly, BBC Worldwide has obtained permission from its board of governors to invest up to £ 7 million (approx Rs 550 million) in India’s FM radio sector.

However, when the BBC was asked about the move to pick up stake in Radio Mid-Day, a spokesperson for the organisation in an e-mail response from London said, “BBC Worldwide is exploring the possibility of entry into the FM radio market in India.”

“At this stage no deals have been confirmed, but BBC Worldwide is talking to potential partners in India with a view to considering joint bids for new FM licenses next year.”

As and when government permission comes through for BBC Worldwide, it would be the second major investment in the Indian media sector.

The first joint venture is with Bennett, Coleman & Co Ltd — publishers of The Times of India and Economic Times, apart from a host of other media ventures — for publishing scientific and other specialty journals in India.

Another foreign player that is expected to soon throw its hat in the FM ring is Richard Branson’s Virgin Radio HT Music in association with Hindustan Times. HT subsidiary Entertainment Pvt Ltd is among the companies that have indicated interest in bidding for the second round of FM licences.

The companies that have expressed interest in running private FM radio stations in 91 cities range from traditional media outfits to clothing outfits to dairy product manufacturers to consultancy firms to trading establishments.

Until now, 100 firms have shown interest in the two-stage bidding process for 338 FM frequencies across India. Quite a few companies have not yet specified the number of frequencies they would bid for as this is just a pre-qualifying round.

Source: Indian Television.com