Sibal sticks to zero-loss claim in 2G allocation -Governance Now

Sibal sticks to zero-loss claim in 2G allocation

Government followed the first-come-first-serve basis policy of NDA government

PTI | May 1, 2012

Sticking by his 'zero loss' claim in the 2008 2G telecom licence allocation, Telecom Minister KapilSibal has said that there was no question of a loss as there was no policy in place on auctioning of spectrum.

"I still stand by my zero loss comment in the 2G spectrum issue. There is no loss (in allocation of 122 telecom licenses). When there was no policy on auction, how can there be a loss," Sibal told PTI Bhasha on sidelines of a function here yesterday.

The Supreme Court had in February this year found fault with the first-come-first-serve allocation policy followed during the regime of then Telecom Minister A Raja and cancelled all the 122 telecom licences issued during that time.

"We have just followed the rules (of giving telecom licences) of the previous government," he said, adding the 2G spectrum was awarded on first-come-first-serve basis as a matter of policy by the previous BJP-led NDA government.

"We just followed the policy. There is no question of loss in it," he said adding, if there was any loss, it has been happening since the previous government.

The Comptroller and Auditor General (CAG), had estimated a loss of Rs 1.76 lakh crore loss to the exchequer in 2008 2G spectrum allocation.

In his comments following the CAG report, Sibal had claimed "zero loss" to the government.

Telecom Regulatory Authority of India (Trai), in its recent recommendations, has said auction of spectrum should be done at higher price than that of 3G spectrum, which was sold in 2010.

"Trai has given its recommendations. It will now go to Telecom Commission and then to Cabinet. We will see and then the government will discuss it and then a decision will be taken," Sibal said.

The Supreme Court, in its February 2 judgement, cancelling the 122 2G licences of operators like SistemaShyam, Uninor, Loop and Etisalat DB, had ordered the government to conduct fresh auctions within four months, the deadline of which has now been extended to August 31.

While refraining from commenting on the reserve price fixed by the TRAI for 2G auction, he said there was a hue and cry when spectrum was sold at lower rates and now when it is being recommended to be sold at higher rates, there is still a problem being raised.

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