Raja ready to face any scrutiny in spectrum allocation

Facing allegations of giving spectrum to new telecom operators at throwaway prices, Telecom Minister A Raja today said in the Rajya Sabha that he was ready to face any scrutiny. "I am aware that there is a CBI case on 2G spectrum and we are ready to face any scrutiny. We are ready to face all questions and provide all records," he said.

There are allegations that the process of 2G licences distribution bundled with start-up spectrum in early 2008 caused a whopping over Rs 20,000 crore loss to the exchequer. 

With regard to the ongoing 3G spectrum allocation, Raja said, "I would like to say that the entire process of 3G spectrum auction is an open process, and the Central Vigilance Commission and other agencies are monitoring it."

The minister said 3G auction was a policy decision of the government since BSNL is a PSU and it becomes a social obligation for the government to do so. He said 3G spectrum auctioning got delayed due to non-availability of radio waves and differences over the number of players to be allowed in this.

Replying to a supplementary, he said, "The guidelines for 3G auction spectrum was announced on August 1, 2008 and amendments were issued on September 11, 2008. However, there were some issues regarding availability of 3G spectrum, number of blocks to be auctioned and the reserve price for 3G auction, which delayed the entire process."

The minister said an empowered group of ministers (e-GoM) was formed in July last year on auction of 3G spectrum to look into these issues.

"After several meetings, as per the decision of the e-GoM, it was decided to auction three blocks of 3G spectrum in 17 service areas and four blocks of 3G spectrum in five service areas and the auction started on April 9, 2010," Raja said.

Initially the government expected to generate Rs 35,000 crore through 3G auction, however, these projections have now gone up to Rs 45,000 crore, he said. He, however, noted that there was lot a confusion in the media and the common man between 2G and 3G.