Shouldn't government recover and auction 2G licences afresh?

GN Bureau | November 16, 2010



The CAG report indicting former telecom minister A Raja has been tabled in Parliament and it is now official that India lost up to Rs 1.76 lakh crore on account of the 2G spectrum allocation in 2008. Raja has already lost his job, the Congress party has managed to reassert its authority in the coalition government that it leads at the Centre and the prime minister seems to have had his way in naming the replacement.

Yet, the issue of the colossal loss of revenue remains to be addressed. Resignation of the minister concerned can at best be considered a belated acknowledgment of wrongdoing. It cannot automatically make up the loss of revenue to the exchequer.

Sunil Jain, opinion editor of The Financial Express newspaper, has argued in an edit page piece in The Indian Express that the government should cancel the 2G licences and go in for a fresh allocation through the telecom regulator TRAI. Jain points out that, as per the CAG, 85 of the 122 licences were issued to bidders that did not meet the norms laid out by the telecom ministry. Moreover, the companies that were allotted the licences were required to roll out 10 per cent of their services by the end of the first year and fully by the end of the three years. As per the stipulations, the companies stood to lose their licences in case they delayed the roll-out.

Since, as Jain rightly concludes, there is no way the government can make up for their lapses of the former telecom minister, shouldn't the government recover the licences and auction them afresh at fair market prices?

Comments

 

Other News

Caring for cancer patients: the expanded network of facilities

Health is a State subject, and the primary responsibility for providing healthcare services, including cancer care, rests with the respective state governments. However, the Department of Health and Family Welfare provides technical and financial support to States and Union Territories across the country

Capabilities, aspirations of India’s youth limitless: Modi

The capabilities and aspirations of India’s youth are limitless, prime minister Narendra Modi said in his remarks to the media at the start of monsoon session of the parliament on Monday.  "In the past month, the country has achieved many milestones, filling citiz

India gets the first hydrogen train

Prime minister Narendra Modi on Friday laid the foundation stone and dedicated to the nation various development projects worth around ₹14,700 crore in Jind, Haryana.   The PM positioned the city as a shining reflection of the good governance model. Emphasizing that the entire Haryana

Climate change is stealing sleep

Climate change has at least doubled the temperature-related sleep loss across 1,338 major cities worldwide over the past five decades, highlighting an emerging but often overlooked public health consequence of rising global temperatures. A new study by Climate Central estimates that between 2020 and

Cabinet approves Mobile Phone Manufacturing Scheme

The union cabinet chaired by PM Narendra Modi has approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of Rs 62,500 crore. It aims to further scale up the production, deepen domestic value addition, strengthen supply chain resilience, enhance global competitiveness. It

Building infrastructure is only half the job

Recent stories of stolen railway wires, disappearing communication towers and missing public infrastructure are often treated as bizarre law-and-order failures of India. Yet they raise a more fundamental question. Why does the State often discover the disappearance of a public asset only after it has alrea

Upcoming Conferences





Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter