With finance minister Pranab Mukherjee determined to hold 3G spectrum auctions this fiscal, the department of telecommunications has set the ball rolling. Sources said DoT has sent a revised draft notice for inviting applications (NIA) to the law ministry for vetting after having dropped a controversial clause providing compensation to successful bidders in the event that allocating them spectrum is delayed.
The NIA is the crucial legal document, which once notified by the government would formally start the auction process. As reported earlier by FE, Mukherjee is now personally monitoring work on the auction process. Though dates are yet to be finalised, DoT roughly plans to hold it in the second fortnight of March, squeezing the entire exercise into 10-15 days.
Clearly dropping his earlier recalcitrance in light of Mukherjee?s resolve, telecom minister A Raja on Tuesday said he is waiting for directions from the finance and the law ministries on timing the 3G auction. ?There is no clarity yet. I am waiting for directions from the finance ministry and the law ministry and have not got any from them,? Raja said.
Earlier in the day, Cabi-net secretary KM Chandrasekhar, who heads a high-level committee to monitor vacation of spectrum by the defence forces, said revenues would get preference over timing for the auction. ?I don?t think it particularly matters if it happens this year or next. (DoT and the finance ministry) will take a decision based on how the revenue can be maximised,? he said.
Finance secretary Ashok Chawla also reiterated that DoT would decide the auction date, but hastened to add: ?I can?t say whether the actual auction will happen before March 31.?
Interestingly, both the Cabinet and finance secretaries said all issues involving 3G spectrum have been resolved, which signals that auctions could still be held by the end of March. ?I think all the issues have been resolved,? the Cabinet secretary said.
Auctions were sched-uled for February 13, but were deferred because of doubts about the availability of spectrum.
Further uncertainty arose regarding their timing with the law ministry cautioning the government against holding auctions until the entire required spectrum was available with the government to avoid subsequent legal complications.
The law ministry?s advice was based on a clause in the first draft NIA prepared by the DoT, which stated that if the government failed to allocate spectrum by December 2010, it should refund the amount deposited by successful bidders along with interest.
However, the finance ministry rejected the clause since a decision regarding the vacation of spectrum by the defence forces would be ratified by an eGoM headed by the finance minister, so there would be no scope for any slippages. The government has decided to hold auctions for three slots for private players across the country, barring five circles where auctions would be held for four. In addition, state-owned MTNL and BSNL would be additional service providers, have already been allocated spectrum and have started services in some circles.