"We will finalise the auction latest by February 2000. After setting up the required physical infrastructure of studios and transmitters, the private stations are likely to go live by the end of next year," RC Mishra, joint secretary, ministry of information and broadcasting, told reporters here.

In July 1998, the Union Cabinet had approved the entry of private players into FM radio broadcasting services by giving licences to private operators in 40 cities. Nearly 150 new FM channels are expected to be set up which will double the current FM network. Only 100 per cent Indian companies will be allowed to enter FM broadcasting. All broadcasters will have to follow programme and advertising code applicable to AIR.

Mishra said the licencees will be severely dealt with if any case of malpractice arises in terms of ownership. An applicant will be permitted only one licence per centre, and license will be issued under the Indian Telegraph Act, 1885 and Indian Wireless Telegraphy Act, 1933.

Earlier, addressing a session on `FM Privatisation in India - opportunities for broadcast engineers' during the ongoing COMDEX/BCS India'99, Mishra said the monopoly of All India Radio will end soon and it "will have to quickly prepare a viable strategy".

AIR will have to reformat its programmes which are local and interactive, he added.

Charles Kelly, chairman-international committee, a US-based society of broadcast engineers, said private radio operators would get high ratings only if they cater to local needs.