The finance ministry and the department of industrial policy & promotion (DIPP) have both expressed serious concerns over the decision by the department of telecommunications (DoT) to unilaterally set October 1 as the cut-off date for accepting new applications for telecom licences.
Officials told FE that the concerns were communicated to DoT by the ministry and department after they met with irate CEOs, displeased by the freeze. The CEOs said the sudden announcement of a cut-off date on September 24 only accentuated the rush for new applications, which touched more than 500.
While expressing their displeasure at the DoT?s move, the finance ministry and DIPP have said that the telecom policy in place today was finalised by an inter-ministerial group and approved by the Cabinet. Therefore, DoT should not have unilaterally decided a cut-off date, even if it was temporary. Officials said such a move, apart from creating policy uncertainty, also tarnished the country?s investment image.
Officials further said that in the event DoT made any significant changes to the guidelines for awarding new licences, it would have to be approved by the Cabinet. In its defence, officials said DoT had no choice but to impose a temporary freeze as it had not expected the spate of applications.