Finance Ministry is understood to be of the view that spectrum should be priced as per its potential as it is scarce and valuable. Finance Ministry had last year cleared the sale of Hutchsion's stake sale to Vodafone in India in a $10.8 billion deal.
Earlier during the day, Sarin asked the government to formulate "long-term" policies for sustainability and favoured auctioning of the radio frequency.
"We always prefer long-term regulatory policies as we have to plan our businesses for long-term," he has said.
