Damp 2G auction gets just Rs 9,225 cr

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fe Bureau: New Delhi, Nov 13 2012, 01:32 IST

Tags: 2G Spectrum | R Chandrashekhar | BWA Spectrum

The auction of 2G spectrum held on Monday turned out to be a damp squib with the government mopping up only Rs 9,224.75 crore after seven rounds of bidding. At the end of the day, bidding was under way in the two circles of Uttar Pradesh (east) and (west), the only two circles where the demand for spectrum has overshot what was on offer. Of the total 22 circles, for which spectrum was auctioned, bids were received in only 18 circles with four circles — Karnataka, Delhi, Mumbai and Rajasthan — not finding any taker. The government has targeted revenues of R40,000 crore but it’s unlikely, it will get anything close to that even after auctions resume on Wednesday.

“The total quantum bid for is a little over Rs 9,200 crore at the end of the fifth round,” telecom secretary R Chandrashekhar said, adding that of the 176 blocks of spectrum that were put on auction, bids were received only for 98.

This is the second time that the government is conducting auctions for the sale of spectrum, the first being in 2010 for 3G and BWA spectrum, a huge success that fetched it R1.05 lakh crore against the budgeted R35,000 crore. Analysts believe that had the auctions been held in January 2008, they may have earned the government far more given that the macro-economic environment then was better and the balance sheets of telcos less leveraged.

They also believe that with the government having drawn a blank in four circles, it may

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SC frowns over govt’s partial 2G auction Centre playing with our order, says SC on 2G auctioning2G spectrum auction: Govt receives bids over Rs 9,200 cr on Day 1 2G auction: Govt gets Rs 9,200 cr bids

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