For this purpose, the Rs 280 crore-group company, Advance Broadcasting Network, plans to raise money through private placement with strategic investors including NRIs and financial institutitions. Talks are also on with several international service providers, including UK-based BBC Resources, US-based NTL, and Germany's Deutsch Telekom for a technical tie-up, senior company executives said.

Speaking to The Financial Express, Advance Broadcasting Network business developement manager Ashutosh Mahindru said that the company plans to invest around Rs 75 crore over the next three months for putting in place transmission and maintenance infrastructure.

"Investments may go up to Rs 350 crore over the next one year as we roll out infrastructure facilities in the 40 cities," Mahindru said. Roll-out of services over all the centres where FM broadcasters are slated to start their operations is expected to completed by the middle of next year, company executives said. Mahindru said the company will decide on its technical partner by the end of this month.

"Third party service providers will enable the broadcasters to save on capital investment and also cut down running expenses," Mahindru said. The Rs 280-crore group plans to initially fund its foray into broadcasting infrastructure through internal accruals. Strategic investors may come in at a later date depending on fund requirements, executives added. The group has targeted a turnover in excess of Rs 400 crore in 2000-2001. The group offers consultancy for the mining industry and environment, besides interests in FMCG distribution and entertainment.

It may be noted that the government has recently paved the way for third party infrastructure service providers to offer services to broadcasters. Over 100 FM frequencies in 40 cities have been auctioned to 29 private players. As per a re-location clause in the tender documents, all broadcasters in the metropolitan cities are to relocate their transmitters in a common place.

Earlier, All India Radio pitched for offering support services to broadcasters in association with Broadcast Engineers Consultants, the technical arm of AIR. Also in the fray is a France Telecom group company, Tele Diffusion de France.

The government has already issued Letters of Intent to most of the players who are to furish their bank guarantees within the next 75 days.