DoT to move Cabinet for waiving MoD's spectrum charges

A draft note has been prepared by the DoT seeking Cabinet approval for waiver of spectrum charges for usage by Defence in bands other than 2G/3G bands amounting to Rs 1,18,666.59 crore

PTI | November 29, 2011



The Telecom ministry is likely to approach the Cabinet with a proposal to waive off spectrum charges of about Rs 1.20 lakh crore for the airwaves used by the Defence.

According to sources, a draft Note has been prepared by the Department of Telecom (DoT), seeking Cabinet approval "for waiver of spectrum charges for usage by Defence in bands other than 2G/3G bands amounting to Rs 1,18,666.59 crore for the period June 1, 2004 to May 31, 2011 for pan-India usage."

It has also sought waiver of spectrum charges for usage of airwaves in 2G and 3G bands amounting to Rs 1,124.69 crore, of which Rs 937.24 crore (for period from June 6, 2004 to July 31, 2009) has already been waived off by the Ministry of Finance, while Rs 187.45 crore for the subsequent period from August 1, 2009 to July 31, 2010 remains.

The slugfest between the telecom and defence ministries had started when DoT dismissed the Ministry of Defence's (MoD) demand for waiving off spectrum charges. MoD objected to the levy of charges, saying that its usage is not for commercial purpose but for national security.

DoT, however, had said that since other state units like the police, paramilitary including BSF and CRPF pay spectrum usage charges, the armed forces should not be exempted. Later, DoT initiated discussions to waive off spectrum usage charges by defence forces based on the understanding that defence will vacate spectrum in phases.

According to a memorandum of understanding (MoU) signed between the two parties in 2009, MoD had agreed to vacate 25 MHz of 3G spectrum and 20 MHz of 2G in phases. In return, DoT had committed to set up an exclusive defence band and defence interest zone for the armed forces.

DoT was to also commission an optic fibre cable network at a cost of Rs 10,000 crore, to be built by Bharat Sanchar Nigam Ltd, for the defence services. .

The defence ministry, however, vacated only 15 MHz of 3G spectrum which was auctioned last year and the government earned over Rs 1 lakh crore, including airwaves for wireless broadband. It had also vacated 15 MHz of 2G spectrum, which has been allocated to new operators.

Under the agreement, the remaining spectrum -10 MHz for 3G (for two operators) and 5 MHz for 2G - is to be vacated only after the OFC network is completed. Recently, the defence ministry had refused to release more spectrum for civilian use as the finance and telecom ministries have not kept up their end of the bargain.

DoT has proposed that the amounts waived off may be provided as part of the Defence Expenditure with an equivalent amount assumed as non-tax receipts. "Treatment of this amount in the MoD and DoT books of accounts will be worked out with the approval of MoF," it added.

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter