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EGoM for 30 pc cut in base price for unsold 2G spectrum, fresh auctions by March 31

CNN-IBN
Dec 08, 2012 at 06:29am IST

New Delhi: The Empowered Group of Ministers (EGoM) headed by Finance Minister P Chidambaram has decided to hold fresh auctions for 2G spectrum by March 31, 2013. The EGoM has also decided to lower the base price by 30 per cent for 2G spectrum in four circles that remained unsold in last auction, a suggestion that could fetch Rs 6,200 crore to exchequer.

The four circles, Delhi, Mumbai, Karnataka and Rajasthan, were some of the most expensive circles in November's 2G spectrum auction. The circles saw no takers as operators found the base price too high.

At the old rates, the government would have earned a minimum of Rs 8,843.55 crore if all the five blocks each in these four circles were sold.

EGoM for 30 pc cut in base price for unsold 2G spectrum

The EGoM headed by Finance Minister P Chidambaram has also decided to hold fresh auctions for 2G spectrum by March 31, 2013.

The EGoM, which met on Friday evening, also suggested auctioning spectrum in 900 MHz band in Delhi, Mumbai and Kolkata simultaneously with the sale of radiowaves in 1800 Mhz in these four circles.

The last 2G mobile phone spectrum auction was virtually a flop as government managed to garner bids worth just Rs 9,407 crore as against a minimum target of Rs 28,000 crore. Industry experts welcomed the reduction but said selling spectrum in metros could still be a challenge.

With Additional Inputs From PTI

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