CAG report on 2G had a detrimental effect on growth: Tewari

Led to conditions where economy can grow only upto 5%

The CAG report on 2G spectrum had a "detrimental effect" on the India growth story and a "corrosive" discourse is creating a mood of paranoia, conditions in which an economy can only grow at rates of 4.4 to 5.5%, I&B minister Manish Tewari said today.

"In the last two or three years, India has been a witness to a most-corrosive discourse which a democracy or any nation could possibly feel," he said, adding that he did not hold the media responsible for this corrosiveness.

"Some of the actions which were taken by some of our institutions or especially people who headed those institutions, is a classical reminder that when individuals decide to go rogue, institutions suffer. That possibly has had the most detrimental effect on the India growth story and I refer to the CAG's report with regard to the 2G spectrum," Tewari said.

He said that in November 2010, the CAG in it report stated there had been a presumptive loss report of Rs 1.76 lakh crore in allocation of 2G spectrum.

"Three years down the line, after two auctions what are the numbers that we are left with? Rs 722 crore upfront which has flown into the kitty of the government and a commitment of roughly about Rs 8,650 crore which is supposed to come in over the next ten years," he said.

The Minister said while there have been difficulties with project approvals, environmental clearances, other factors but the factor that stood on India's path to greatness was the corrosiveness of discourse.

"If you create an environment of paranoia, if you create an environment of suspicion, if you perpetuate an environment where you say corporate is a bad word, making money is evil, then unfortunately you are left with an economy which is destined to grow at 4.4%, 5% or five- and-a-half per cent," he said.