No scoring points, we will auction airwaves again: Sibal
By IANS - NEW DELHI
15th November 2012 04:09 PM
-
"Of course, there will be an auction. There is no doubt about that. What procedure we follow for that auction is something we will decide in another few weeks," Communications Minister Kapil Sibal said. (File/PTI)
A day after nearly half the airwaves put on the auction block among telecom players went unsold, the
government sought to project a brave face, with Communications Minister
Kapil Sibal Thursday saying there will be another round of bidding.
"Of
course, there will be an auction. There is no doubt about that. What procedure we follow for that auction is something we will decide in another few weeks," Sibal told reporters here.
He said the government did exactly what the courts wanted it to do -- that is sell the airwaves, or radio frequency spectrum, that was vacated after 122 licences and accompanying spectrum issued in 2008 were cancelled by virtue of a Supreme Court order.
"We, in fact, even brought the price down because we wanted to sell -- we wanted companies to buy. If we had fixed at Rs.18,000 crore ($3.33 billion) in terms of what the Telecom Regulatory Authority of India (TRAI) had recommended, even this would not have been fetched."
Sibal was referring to Rs.9,400 crore ($1.74 billion) which the winning bids will fetch the government, as opposed to expectations of as much as Rs.40,000 crore ($7.4 billion) or more on the basis of presumptive loss which India's official auditor had once estimated.
The government had fixed the reserve price for the spectrum at Rs.14,000 crore ($2.59 billion).
The
communications minister also took a dig at the estimates of the Comptroller and Auditor General of India (CAG), which at one point had embarrassed the government no end, and said all this has resulted in no benefits to the consumer.
"We are not here to score points. Our point always was that market dynamics should be allowed to play out. The
moment you start dealing with market directly or indirectly it will be bad. The government's wisdom should only intervene when required," he said.
"The purpose of the government is to ensure development and to ensure prosperity. We are not here to feel vindicated," he said.
"The
consumer has not benefited at all because the nature and the kind of investments that ought to have gone into the sector have stopped and the
sector has been in debt," he added.
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Comments(3)
Good that Mr.Kapil Sibbal says there is no scoring point involved and market dynamics need to be allowed to be played out. Retendering is also under consideration of the govt. The supreme court also took its own very convenient time to instruct cancellation of many biased contracts given for 2G spectrum licences. Many licences were resold also in heavy commercial deals. Thereafter the govt. also took its own time. Market rates keep on fluctuating. If these tenders had been floated in 2010 or 2011 substantial offers would have come the govt. way. No use deriding the CAG reports. . Not many interested now in 2G licences also when the demand trend is for 3G, 4 G etc. Present ruling prices are low for 2G. Just think of it; first black and white tvs, then colour tvs, then LCD tvs, then LED tvs, now smart tvs even with internet facilities. Who would like to go in for b/w or colour tvs nowadays; LCDs also dont have much market and are also on their way out. Their servicings going to be
Posted by M at 11/15/2012 19:06 Reply to this Report abuse
(Contd...) LCD tvs servicings also going to be a big problem in future as in case of old desktop PCs with SD Rams. The consumer has not benefited at all not only in the telecom sector but also in sectors like electricity, coal, gas cylinders, petrol, kerosene, diesel etc. All these companies are also deep in debt. What is the remedy? What the economic, technical and political pundits are doing in all these spheres? Consumers gooses being repetedly cooked in various ways in all these sectors. How come Coal India Ltd has cash surplus of some Rs.60,000 crores when they have failed repeatedly to meet coal supply targets leading to so many sufferings for power plants and lakhs of consumers? Even now coal stocks for some power plants are pathetically, critically very low.
Posted by M at 11/15/2012 19:13 Reply to this Report abuse
When there are no buyers now, what makes Mr. Sibbal to believe that next bidding will be successful? Reason of failure is not old technology or court's orders (as emphasised by Mr. Sibbal).. but lack of faith of business class on Govt planning and implementations of policy and political crony capitalism (made impossible by close observation by court).
Posted by Rajeev Tewari at 11/15/2012 19:23 Reply to this Report abuse