3G auction will earn Rs.45,000 Cr to Govt - Raja

The ongoing auctions to award radio frequency spectrum for third generation (3G) telecom services and for rolling out broadband wireless internet services could raise Rs.45,000 crore, Rs.10,000 crore more than anticipated, the government said Thursday.

'We anticipated that the auction would raise Rs.35,000 crore. It may go up to Rs.45.000 crore,' Telecom Minister A. Raja said during question hour in the Rajya Sabha.

Responding to a supplementary from K. Malaisami (AIADMK) on the delay in the auction, Raja said that in the earlier stint of the United Progressive Alliance government there were 'differences of opinion' between the government and the Telecom Regulatory Authority of India.

Even as these issues were being resolved, the general elections of 2009 were called 'and we asked the Election Commission for its advice (on taking a decision on the auction)', the minister said.

'After the new government was formed, an empowered group of minister fixed the base price and the number of slabs to be auctioned,' Raja added.

He also defended the decision to allocate 3G spectrum to state-owned Bharat Sanchar Nigam Limited (BSNL) even before the auction was conducted for private telecom operators.

'It was a political decision. Since BSNL is a PSU (public sector undertaking), it has social obligations and it was decided to allot it one slab at the base price,' Raja explained.

Responding to a supplementary from Ravi Shankar Prasad (Bharatiya Janata Party) on the mechanism put in place to ensure that the alleged irregularities that had occurred during the allocation of 2G spectrum were not repeated, the minister said: 'Regular monitoring is being done.'

He also refuted allegations that the players that had been allocated 2G spectrum had resold this, causing a loss of Rs.8,000 crore to the government.

'2G spectrum was allocated during the NDA (National Democratic Alliance) regime (that was voted out in 2004). This spectrum cannot be sold or traded. However, the company can offload its stake but this has to be approved by the CCEA (Cabinet Committee on Economic Affairs),' said Raja.