e-auctions bring windfall for govt

Girja Shankar Kaura

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tRIBUNE nEWS sERVICE

New Delhi, March 9

Reflecting that the transparent e-auction was the right way forward for the sale of country’s natural resources, government’s kitty was well on its way to getting swelled as the spectrum auction continued today and the coal mine auctions set to bring in over Rs 2.5 lakh crore for the states.

Even as it emerged that there were no takers for 3G spectrum in the 2,100 MHz band in key telecom circles across the country going by the demand during the ongoing spectrum auction, the DoT announced that telecom operators have submitted bids worth Rs 94,000 crore during the spectrum auction that reached 31 rounds today.

The development indicated that telecom operators such as Airtel, Idea Cellular, Vodafone, Aircel, Reliance Jio Infocomm, Reliance Communications, Tata Teleservices, and Uninor were active during the bidding and were concentrating on the “voice bands”, that being the 900 MHz and 800 MHz bands. There were not many takers in the 1800 MHz band as well. The government is selling spectrum in the 2100 MHz, 1800 MHz, 900 MHz and 800 MHz bands.

Two factors — high reserve price at Rs 3,705 crore per MHz for the 2,100 MHz spectrum and limited availability of 5 MHz – seem to be negatively impacting the 3G spectrum demand.

The government has set Rs 3,705 crore per MHz for 3G spectrum against Rs 3,646 crore per MHz for 800 MHz, Rs 3,980 crore for 900 MHz band pan-India, Rs 2,191 crore for 1,800 MHz band.

3G spectrum available in telecom circles such as Andhra Pradesh, Delhi, Gujarat, Haryana, Karnataka, Kerala, Kolkata, Madhya Pradesh, Maharashtra, Mumbai, Odisha, Tamil Nadu, Uttar Pradesh (East) and Uttar Pradesh (West) has not got any response.

Reports said with the second round of auction of the coal mines having got over, as much as Rs 2.5 lakh crore may be received by the government following the sale.

In the first phase of auctions that concluded last month, 19 blocks were on offer and would raise for the state governments of Chhattisgarh, West Bengal, Jharkhand, Odisha and Maharashtra as much as Rs 109,000 crore over 30 years and a number of other mines are still to go under the hammer.

The Central government in a meeting today with successful auction bidders decided that most clearances required to start mining would be incorporated in the “vesting order” transferring rights to the new owner.

The vesting order, to be issued by March 23, transfers to the successful bidder all the rights, title and interest of the prior allottee and a mining lease that will be granted by the state government.

Among the statutory licences and clearances required to start coal mining are Ministry of Environment and Forest approvals, consent from the local pollution control board, mines safety clearances and an escrow account for dealing with early exit from operations.