The Telecom Ministry has informed the Finance Ministry that the charges for spectrum (other than 2G and 3G bands) used by the Defence amount to whopping Rs 1.31 lakh crore.

According to the Department of Telecom (DoT), the spectrum charges (for 2G and 3G bands) of the Ministry of Defence (MoD) from August 1, 2009 to July 31, 2010 amount to Rs 187.45 crore.

"As regards spectrum charges other than 2G and 3G bands, the spectrum actual in use and pan-India works out to be Rs 14,087.08 crore and Rs 1,17,517.16 crore, respectively," DoT has said in a communication to the Finance Ministry.

However, it was not clear whether DoT has sought the amount from the Defence Ministry or it has just brought this matter to the notice of Finance Ministry.

Telecom Secretary R Chandrasekhar has said in a letter to R Gopalan, Secretary, Department of Economic Affair, that spectrum usage charge for Defence networks in 2G and 3G bands -- between June 1, 2004 and July 31, 2009 -- amounted to Rs 937.236 crore, which was waived off by the Finance Ministry.

A High level Committee on Efficient use of Spectrum, in 2004, had suggested that spectrum charges should be charged from all users.

The New Telecom Policy -1999 envisaged that for optimal and efficient utilisation of spectrum, a fee shall be charged from all users including Government Departments.

DoT wants the Ministry of Defence to vacate additional spectrum for commercial use as soon as possible, which the latter is reluctant to do.

The matter has now been referred to the Empowered Group of Ministers (EGoM).