Union Cabinet approved the base price for the 2G spectrum auction
Union Cabinet approved the base price for the 2G spectrum auction
New Delhi: Expecting to Rs 64,840 crore revenue, the Union Cabinet on Monday approved the base price for the 2G spectrum auction. This doesn’t include revenue which the government expects to garner from the 3G spectrum auction.
Around Rs 16,000 crore is expected to be realised in the current financial year from 2G spectrum auction. This will help finance minister Arun Jaitley in his endeavour to achieve a fiscal deficit target of 4.1 per cent in the current fiscal.
The Cabinet meeting, chaired by Prime Minister Narendra Modi, has approved the proposal of the telecom department to proceed with auction in 800, 900 and 1800 MHz bands. It has also approved the reserve price of Rs 3,646 crore for pan-India per mhz in 800 band and Rs 3,980 crore for 900 band excluding Delhi, Mumbai, Kolkatta, and J&K. It also approved a base price of Rs 2,191 crore pan India (excluding Maharashtra and West Bengal) for 1800 MHz band.
The quantum of spectrum to be put to auction is 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. This means a total of 380.75 MHz in 800,900 and 1800 MHz is being put to auction.
The Cabinet also decided that intent to put 2100 MHz (3G) to auction may be announced along with auction of other bands. Any entity that gives an undertaking to obtain a unified license can bid for the spectrum.
The winners also have the option to make deferred payment. As per this plan, the winners will have to make an upfront payment of 33 per cent in the case of 1800MHz band, and 25 per cent in case of 900MHz and 800 MHz within 10 days of the results.
( Source : dc correspondent )
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