Icra expects moderate participation in spectrum auctions up to Rs 60,000 cr

The Centre has budgeted Rs 1.33 trillion as non-tax receipts from the telecom sector for FY2021

Rating agency ICRA expects moderate participation for the upcoming spectrum auctions at Rs 55,000-Rs 60,000 crore due to the limited financial flexibility of the industry.

The Telecom Regulatory Authority of India (TRAI) has recommended auctions with one of the largest quanta of spectrum on offer - more than 8,500 MHz, which at reserve price, is valued at around Rs 5.7 trillion. However, ICRA expects a relatively muted participation fetching around only Rs 55,000 - Rs 60,000 crore to the exchequer.

"This, along with the impending AGR dues, are expected to result in further elevation of the industry debt to around