Finmin Note Questioned Logic Of Spectrum PolicyNew Delhi: Questions raised in the government on the validity of pricing 2G spectrum in 2008 at rates set in 2001 and ambiguities over telecom regulator Trai’s views were not pursued as the relevant file hit a dead end, the Joint Parliamentary Committee (JPC) draft report has said.
While endorsing the government’s defence that pricing was a policy decision, the JPC report also says a “self-contained note” arguing for revision of the Rs 1,650 crore entry fee was simply not processed. The draft refers to the position paper dated December 17, 2007 — about three weeks before the 2G licences were allocated — that had said fixing the fee paid by the fourth cellular operator in 2001 may be an incorrect benchmark in 2008.
“We cannot state unequivocally that the interpretation that the 2003 Cabinet decision allowed the entry fee for new operators to be fixed at the 2001 bid levels is correct. There is much ambiguity in this interpretation…unless (DoT) can show other papers to support its view,” Shyamala Shukla, director, infrastructure, in the finance ministry wrote.
The view, later further endorsed by additional secretary Sindhushree Khullar who also argued for auction of airwaves, raises the query whether finance minister P Chidambaram remained unaware of this opinion and if he took a view on the matter. In another file, Khullar, noted on April 15, 2008, that “in pursuance of FM’s directions, a comprehensive note on spectrum policy including utilization, allocation and pricing of 2G spectrum was placed before him on the basis of which he had issued a note to PM dated January 15, 2008.”
Shukla had written that “it may not be correct to say that the increase in entry fee, which is presently based on the 2001 auction will increase the cost of service”— a view that challenges the Manmohan Singh government’s argument that a higher price of spectrum would have hurt the consumer.
The official said higher price of spectrum will force service-providers to be more efficient as competition acts as a spur to prevent costs being passed on to the consumer. “Department of economic affairs could take up this issue with DoT and ask them to revise the entry fee…alternatively a GoM could look into all the issues.” “The note was marked to joint secretary andadditional secretary. It has been stated that there are however nonotings thereafter and the file hanot been processedfurther,” the JPC draft report states. The lack of interest shown by the finance ministry in examining the opinion offered by the mid-level officer and her senior colleague is intriguing, all the more as it flies in the face of the government’s claim that keeping mobile services affordable was an important policy objective.
Karunanidhi’s wife too ill to appear before 2G judge: DMKChennai: Former Tamil Nadu chief minister and DMK chief M Karunanidhi's wife Dayalu Ammal is unlikely to appear before a Delhi court on May 6 to depose as a CBI witness in the 2G spectrum case. The CBI has submitted a list of prosecution witnesses to be summoned for recording of statements in the case before special CBI judge O P Saini. According to CBI, 80-year-old Dayalu Ammal holds 60% shares in Kalaignar TV. “Dayalu Ammal is too ill to come out of the house. We will submit a medical report to the court soon,” a senior DMK leader said. AGENCIES
COURTESY:
Rajeev Deshpande TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/04/20&PageLabel=13&EntityId=Ar01300&ViewMode=HTML
While endorsing the government’s defence that pricing was a policy decision, the JPC report also says a “self-contained note” arguing for revision of the Rs 1,650 crore entry fee was simply not processed. The draft refers to the position paper dated December 17, 2007 — about three weeks before the 2G licences were allocated — that had said fixing the fee paid by the fourth cellular operator in 2001 may be an incorrect benchmark in 2008.
“We cannot state unequivocally that the interpretation that the 2003 Cabinet decision allowed the entry fee for new operators to be fixed at the 2001 bid levels is correct. There is much ambiguity in this interpretation…unless (DoT) can show other papers to support its view,” Shyamala Shukla, director, infrastructure, in the finance ministry wrote.
The view, later further endorsed by additional secretary Sindhushree Khullar who also argued for auction of airwaves, raises the query whether finance minister P Chidambaram remained unaware of this opinion and if he took a view on the matter. In another file, Khullar, noted on April 15, 2008, that “in pursuance of FM’s directions, a comprehensive note on spectrum policy including utilization, allocation and pricing of 2G spectrum was placed before him on the basis of which he had issued a note to PM dated January 15, 2008.”
Shukla had written that “it may not be correct to say that the increase in entry fee, which is presently based on the 2001 auction will increase the cost of service”— a view that challenges the Manmohan Singh government’s argument that a higher price of spectrum would have hurt the consumer.
The official said higher price of spectrum will force service-providers to be more efficient as competition acts as a spur to prevent costs being passed on to the consumer. “Department of economic affairs could take up this issue with DoT and ask them to revise the entry fee…alternatively a GoM could look into all the issues.” “The note was marked to joint secretary andadditional secretary. It has been stated that there are however nonotings thereafter and the file hanot been processedfurther,” the JPC draft report states. The lack of interest shown by the finance ministry in examining the opinion offered by the mid-level officer and her senior colleague is intriguing, all the more as it flies in the face of the government’s claim that keeping mobile services affordable was an important policy objective.
Karunanidhi’s wife too ill to appear before 2G judge: DMKChennai: Former Tamil Nadu chief minister and DMK chief M Karunanidhi's wife Dayalu Ammal is unlikely to appear before a Delhi court on May 6 to depose as a CBI witness in the 2G spectrum case. The CBI has submitted a list of prosecution witnesses to be summoned for recording of statements in the case before special CBI judge O P Saini. According to CBI, 80-year-old Dayalu Ammal holds 60% shares in Kalaignar TV. “Dayalu Ammal is too ill to come out of the house. We will submit a medical report to the court soon,” a senior DMK leader said. AGENCIES
COURTESY:
Rajeev Deshpande TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/04/20&PageLabel=13&EntityId=Ar01300&ViewMode=HTML
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