New Delhi,Jan 16,  The Union Cabinet on Friday gave its approval to the auction of Phase Three of FM radio in the country. It also cleared the migration of private FM Radio licenses from Phase-II to Phase-Ill in 69 cities for 135 channels.

The auction will add an estimated revenue of over 550 crore rupees to the national exchequer. There are 243 private FM channels in operation in 86 cities of the country, spanning 26 States and three Union Territories.

The Cabinet also gave its nod to amend the Motor Spirit and High Speed Diesel control order. The amendment will allow private biodiesel manufacturers, their authorised dealers and Joint Ventures of Oil Marketing Companies to supply bio-diesel to consumers.

The Cabinet also decided to suitably amend the National Policy on Bio-fuels for facilitating consumers of diesel in procuring bio-diesel directly from private bio-diesel manufacturers. This decision will encourage the production and use of bio-diesel in the country.