DoT rejects Fin Min's objection on 3G auction issue

By Sandeep Gurumurthi , CNBC-TV18

The DoT or Department of Telecommunications, has rejected the Finance Ministry's objections on the 3G-auction issue, reports CNBC-TV18. According to DoT sources, the timeframe for 3G auctions will not be changed. 

 

The Telecom Ministry said the Finance Ministry 's reservations on procedural aspects is surprising. They said there is no departure from the Cabinet decision on spectrum pricing.

 

DoT said if there is a need, there could be more consultations with the Finance Ministry. It feels the 3G policy is consistent with the 2003 Cabinet decision on spectrum pricing.

 

It has rejected the observations of the Finance Ministry saying that at every level consultation happened between DoT and the Finance Ministry. Consultation happened before 3G guidelines were actually finalised. This includes even the junior level right up to the Ministerial level.

 

DoT officials said the apex decision-making body within DoT, i.e. the Telecom Commission, has a permanent representative of the Finance Ministry. The Telecom Commission had already cleared the 3G policy. It finds the allegations of the FinMin of not being consulted absolutely incorrect.

 

However, the department said they are willing to have more consultations with FinMin officials if there is need. Those consultations will be within the already prevailing institutional framework. If Fin Min has any specific observations or objections to the guidelines that have been finalised, then DoT is more than willing to hear them out and if possible factor them in the guidelines.

 

As far as the timeframe for 3G auctions are concerned, Telecom Minister A Raja said there is no question of the timeframe being impacted on account of these objections raised by the Finance Ministry. "The government is committed to conducting auctions over the next couple of months. The process for finalizing an independent agency to conduct these auctions is already on. Over the next 10-12 days, there would be clarity on that front."

 

So, DoT in a sense is holding its ground saying that auctions will happen as per schedule.

 

Sources indicate even the Finance Ministry would not want the auctions to be delayed because if DoT estimates are to be believed then the exchequer could rake in as much as Rs 30,000 crore once these auctions are over. At some point, there will be a meeting ground and it is unlikely that what seems to be an inter-ministerial spat will in anyway derail the 3G auction process.