The radio broadcast policy panel has recommended a revenue sharing arrangement along with an entry fee for private operators in FM broadcasting instead of the fixed licence fee regime and a pre-qualification round to adjudge bidders' viability.
It has recommended a revenue share of 4 per cent of gross revenue by the private operators.
The committee, which submitted its report to the government on Monday, has also suggested a cap of 26 per cent on foreign direct investment (including that on foreign debt funding) while opining in favour of private broadcasters being allowed to transmit news and current affairs programmes.
Taking a divergent view from that held by the government in most of its suggestions, the committee has also recommended allocation of multiple licences in the same city, permission for networking by the same broadcaster on several stations and removal of the co-location condition for making this sector viable.
On the issue of FDI, the committee placed a 26 per cent limit, including foreign institutional investment and other debt funding, while also making it mandatory that equity held by the single largest Indian shareholder be at least 51 per cent.
Making no distinction between players offering news and current affairs and entertainment on the FDI limit, the panel has said 75 per cent of directors of the licensee, its CEO, all key executives and editorial staff must be resident Indians.
"For entertainment channels exception can be made for people of Indian origin cardholders and NRIs. This facility will not be available to channels providing any kind of news," the panel said in its executive summary.
Radio broadcast policy committee chief Amit Mitra told reporters the committee's suggestions were in line with the government's objective of maximising radio channels.
As per official figures, the government has targeted 101 private channels by the end of this year, but only 23 have come up so far.
Information and broadcasting secretary Pawan Chopra said the government will study each recommendation before taking any action on the report, while dismissing apprehensions that revenue loss to the government would be substantial.