stagger payment over three years.
In view of rising oil and food subsidy bill and subdued revenue collection, the government had increased the fiscal deficit target for 2012-13 to 5.3 per cent from 5.1 per cent estimated in the budget.
This too now seems difficult in the backdrop of tepid response to 2G spectrum auction and the disinvestment plans which have so far remained a non-starter.
As regards disinvestment, although the government has proposed to raise Rs 30,000 crore from stake sale in the state-owned enterprises, not a single PSU has hit the market in the first seven months of 2012-13.
The government had recently postponed stake sale in large companies -- Rashtriya Ispat Nigam Limited and aluminium major Nalco. The Finance Ministry, however, had been maintaining that the disinvestment target of Rs 30,000 crore would be met.
The government will take a call on disinvestment of Nalco in January after the release of the financial results by the public sector company.
"The second quarter results are not representative of the company's valuation. In October, there is a little visible improvement. So, we decided that it will be good to do it in the third quarter," Disinvestment Secretary Mohammad Haleem Khan had said.
High price key reason for 2G spectrum failure: COAI
The telecom industry today blamed the poor response to the 2G spectrum auction on the high reserve price set by the government.
"First and foremost among the many causes, is the clear recognition that an artificially high reserve price that bore no congruence to market realities was the key reason for the failure," GSM industry body COAI said in a statement.
The second factor is that the majority of the bidders are actually operators who had lost their licences and are compelled to participate in the auctions despite the high prices and the limited availability, simply in order to sustain their customers, businesses and to protect their years of investments, it said.
"Finally, the limiting of spectrum available for auction, which contrary to the Supreme Court ruling (to auction the entire spectrum related to the quashing of the impugned licences), added to the sense of uncertainty and fear of