Big Dream – Govt. Expects Rs 20,000 Crore from Upcoming 2G Auction

Indian government expects to raise about Rs 20,000 crore from the 2G spectrum auction, which would be completed before March 2013, after lowering base price of spectrum.

Upcoming 2G Auction India

“We would expect about Rs 20,000 crore for the 1,800 MHz and 900 MHz spectrum band that is put on the auction block. For 1,800 MHz, it would be about the base price of Rs 5,000 crore for 5 MHz,” Telecom Secretary R. Chandrashekhar said.

“In Delhi and Mumbai, the reserve price of 900 MHz will be twice the reserve price of 1800 MHz, (but in) Kolkata, it would be twice the auction (discovered) price of 1800 MHz,” Chandrashekhar added.

There were no takers for 2G spectrum in four circles — Delhi, Mumbai, Karnataka and Rajasthan – during the auction held in November, with operators staying away citing high prices for the radio waves. The reserve price in Delhi was fixed at Rs 693.06 crore, Rs 678.45 crore for Mumbai, Rs 330.12 crore for Karnataka and Rs 67.08 crore for Rajasthan. The government had managed to garner Rs 9,407.64 crore from the last 2G spectrum auction against expected target of Rs 28,000 crore.

On Thursday, the Indian cabinet approved a 30 per cent cut in the reserve price of spectrum in four zones. The much-hyped 2G mobile phone spectrum auction flopped, with the government managing to garner bids worth just Rs 9,407 crore.

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10 Comments on "Big Dream – Govt. Expects Rs 20,000 Crore from Upcoming 2G Auction"

 

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S.Sudhakar
December 15, 2012 11:40 pm 11:40 PM

Let the government launch GSM in 850 and 1900 MHz frequencies. I think 50% of the GSM subscribers use quad band GSM handsets.

If government expects Rs.20000 crore in above the table dealing (which is a day dream), then think how much dealing would be happening UNDER THE TABLE for completing / achieving this Rs.20000 crore deal !!!!.

som
December 15, 2012 7:04 pm 7:04 PM

might not be “big dream” ultimately. the govt might have ‘advised’ operators not to bid with too much enthusiasm last time. so that they could claim CAG was wrong in its calculation. this time there would be no such advise.
anything for political benefit.

Vikas Patidar
December 15, 2012 5:53 pm 5:53 PM

If somehow government could able to recover even 1/3 part of mentioned money then still in the end KAPIL SIBBAL would be definitely saying that we got 0 ( ZERO) Crore in second auctioning of the 2G.

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