Rs 8,956-cr loss due to irregular spectrum allocation: Audit report

The government has lost Rs 8,955.75 crore because of inconsistencies in allocation of additional spectrum to telecom operators and fixation of spectrum usage charges, the Director General of Audit said in a report.  

While the government has lost Rs 5,061.92 crore from spectrum usage charges between 2007-08 and 2012-13, the remaining amount was due to inconsistent allocation of additional spectrum beyond 4.4 MHz and 6.2 Mhz, the report noted.

The report said inconsistent allocation of additional spectrum to Bharti Airtel, Aircel, Idea Cellular, Loop Mobile, Reliance Telecom, Spice and Vodafone, which got licences in 1994-95 in the first lot, had caused a loss of Rs 1,625.23 crore. The amount was Rs 1,323.74 crore for allocations to MTNL and Vodafone in 2002, while additional spectrum allocation in 900 MHz band caused a loss of Rs 913.87 crore, the report said.

The report noted that the government has not consulted Telecom Commission, and there was no provision in the licence terms for additional allocation, which led to inconsistency and caused loss to the exchequer.

Earlier as well, an audit report had found loss to the government because of inconsistent allocation of additional spectrum. The decision to quash 122 licences in 2012 came after an audit claimed a presumptive loss of Rs 1.76-lakh crore due to irregular allocation of spectrum at a dirt cheap price.