The Department of Telecom today termed as baseless the allegations by the CPI(M) of Rs 1.90 lakh crore loss to the exchequer due to 2G spectrum allocation in 2008.

The new licences bundled with start-up spectrum were given to new players as per the telecom regulator TRAI's recommendations and no rule was violated, senior DoT officials said commenting on CPI(M)'s allegations.

The CPI(M) had yesterday alleged that the exchequer has lost a staggering Rs 1.90 lakh crore from 2G spectrum and had asked the government to drop Telecom Minister A Raja from the Council of Ministers.

In its reply to the apex auditor CAG, the DoT has said that "... TRAI had not recommended any change in policy either for change in entry fee or for the auction of 2G spectrum."

The CAG in its memo had said that the government may have suffered a loss of potential revenue of Rs 48,374 crore due to non-revision of entry fee for 2G spectrum, but the DoT in its reply earlier last month had defended the decision saying the policy was not changed since its introduction as this has resulted in unprecedented growth of telecom services.

According to DoT, many of the incumbant players also got licences and start-up 2G spectrum at the price at which licences were given to new players, till as long as middle of 2007.

The CPI(M) has arrived at Rs 1.90 lakh crore going by the final bid for 3G spectrum for which the auction was held recently and the government collected a whopping Rs 67,719 crore.

According to DoT, the auctioning of 2G spectrum was not considered as it was meant for basic essential mobile service to the people all along. On the other hand, 3G spectrum is meant for commercial usage also.

It asserted that the issues related to 2G spectrum pricing and allocation were also deliberated in the Empowered Group of Ministers on 3G spectrum and no change in 2G policy was suggested.