Prime Minister Manmohan Singh today said that although there is a huge gap in the prices of spectrum for 2G and 3G services, the whole issue needs to be seen in proper perspective.

The pricing for 2G spectrum was based on policies that were already in place and had approvals of telecom regulator TRAI, he said at a national press conference to mark UPA-II's one year in office, quoting telecom minister A Raja as having told him.

Asked about Raja facing allegations of corruption in sale of 2G spectrum, Singh said that since investigations were on in the case he would not like to offer his opinion on the issue.

"This matter has been discussed in Parliament... I have also discussed this issue with (Communications Minister) A Raja and he has told me that what he did was... implemented the policies which were in place... That he has the recommendation of TRAI and of the telecom commission supporting the course of action," Singh said.

The opposition has alleged a Rs 60,000 crore scam in sale of 2G spectrum (radio waves) in 2008 at 2001 prices.

Singh said that some complaints were received by CVC (Central Vigilance Commissioner) about issues related to 2G spectrum allocation.

"CVC has asked the CBI to look into this and that process is on and pending that investigation, it is not proper for me to express any definite opinion," he added.

CBI had last year searched offices of the Telecom Ministry in connection with the 2G spectrum sale.

"It is certainly true if you compare figures what was collected by 2G process as against 3G process there is a huge gap," Singh said.

But, the Prime Minister added, "I think one has to look at the whole problem in proper perspective. There was a particular policy which was in place since 2003 before our government came in power.... Raja's point was that it would amount to discrimination against new players."

"I would like to say that our government has been very clear that right from the beginning that corruption is a problem and if I come to know if there is any involvement at any level in corruption, we will take action," he said.

He defended Raja, under attack for alleged scam in granting licences in 2008, saying he had only followed the policies of the previous NDA government.

At the same time, he dismissed suggestions for Raja's removal from the Cabinet, saying "....pending the investigations it is not proper for me to express any definitive opinion."

Citing the success of 3G spectrum auction, which would fetch the government over Rs 67,700 crore as against about Rs 10,000 crore that the exchequer got from new 2G licences in 2008, the opposition has been asking for Raja's resignation saying the scam caused a loss of up to Rs one lakh crore to the exchequer.

Answering a query at the first national press conference of the UPA-II, Singh said: "I have also discussed this issue with Raja... he has told me that what he did was, implemented the policies which were in place since 2003 (NDA regime)."

Singh said Raja, who reprsents DMK in the Union Cabinet, has also made his position clear in Parliament and also in the media.

The Prime Minister, however, admitted that there is a huge gap in the revenue generation from 2G licences (given by Raja in 2008) compared to a whopping Rs 67,700 crore from the auction of 3G spectrum sale that concluded only last week.

"I think one has to look at the whole problem in proper perspective. There was a particular policy which was in place since 2003 before our government came into power," Singh said, adding that Raja's point was that it would amount to discrimination if different yardsticks were applied for the new entrants.

Pointing that the whole issue was being investigated and the CVC has asked the CBI to look into this and the process is on, he said and assured: "If I come to know that there is any involvement at any level in corruption, we will take action."

The pricing for 2G spectrum was based on policies that were already in place and had approvals of telecom regulator TRAI, he said.

Nine new companies including Unitech, Shyam Sistema, Datacom, S Tel and Loop Telecom were given licences in 2008 and pan-India licence was then offered at Rs 1,658 crore along with start-up 4.4 MHz spectrum.

Anil Ambani-led RCom and Tata Teleservices were allowed to offer mobile services on both technology platforms -- GSM and CDMA.