Ex-CabSec wanted 2G entry fee hiked to mop up Rs 35,000 cr

Deposing before the Joint Parliamentary Committee (JPC) examining 2G spectrum scam which was boycotted by BJP members, Chandrasekhar said he had made the suggestions in a letter to the Prime Minister on December 4, 2007.

Chandrasekhar, who was the Cabinet Secretary between June 2007 to June 2011, said the Prime Minister had asked him to look into the issue of financial implications following media reports and letters written to the Prime Minister's Office regarding 2G spectrum.

"He (Chandrasekhar) suggested a possibility of enhancing the entry fee keeping in view factors like increased tele density, inflation and increased consumber base...If 2001 price is revised to some level, what will be the revenue implication," JPC Chairman P C Chacko said after the meeting.

"If there is auction, if there is no auction, what will be the revenue implication. It can be roughly Rs 35,000 crore based on indexing the 2001 fee figure (Rs 1658 crore) to 2008, considering various aspects," Chacko said quoting the former Cabinet Secretary's note to the Prime Minister.

The 2G spectrum was allotted in January 2008 at the entry fee of Rs 1658 crore and total revenue generated was about Rs 9000 crore.

When JPC members asked Chandrasekhar as to why his suggestion was not accepted, he said the PM had sought opinions from various quarters and revenue implication was not the sole criteria for reaching at conclusion.

"As it is, the prerogative to take a decision lied with the DoT," Chacko said basing his statement on Chandrasekhar's contention. (MORE)