India’s cash-strapped private FM radio sector has sent and SOS to the government, seeking an immediate economic survival package to save the industry.
In a letter to the government, the Association of Radio Operators for India (AROI) asked for release of a relief package of Rs 3 billion to keep the industry afloat.
In the letter to the prime minister, signed by AROI president, Anuradha Prasad, the expressed disappointment with Finance Minister Nirmala Sitharaman’s Covid-19 economic packages announced last week, saying: “We are deeply pained to note that none of these measures [announced by the FM] has any effect, whatsoever, on the private FM radio sector.”
Earlier, AROI had written to Information & broadcasting Minister Prakash Javadekar highlighting that in April 2020, As compared to profit before tax of Rs 180 million in April 2019, the FM sector suffered a loss of Rs 1 billion, and may lose over Rs 6 billion till September.
In her letter, Prasad said the only measure that could have some effect on smaller groups operating FM radio would have been extra credit facility for micro, small and medium enterprises (MSME).
“Only 31 out of 371 stations are MSME, while 340 do not fall into the MSME segment. However, even the stations that fall in MSME, cannot avail the benefit, as being heavily dependent on government advertising which has dried up over last one year, they will have no revenue forecasts for repayment to avail the facility,” she said.
The AROI has asked the government for a Rs 3 billion relief package.
“As FM Radio will pay, over next 12 years or so, about Rs 15,000 crore to the government through migration, license fees, rentals, GST etc, a survival package of Rs 300 crore to keep this media sector alive, is of interest to the nation.”
In it’s earlier letter, the radio association had urged the government for a one-year waiver from license fees, restoration of government advertising and clearing the long-pending payments from the government’s Directorate of Advertising and Visual Publicity.
It has also requested for reduction of GST from 18% to minimum 5%.