2G spectrum: government sets auction base price set at 14k crores

Saturday, 4 August 2012 - 11:13pm India News Bulletin Desk

2G auction base price set at 14k crores by Indian govt

Image: Wikimedia Commons (ALT1040)

Telecom companies planning to bid for second generation licenses will have to start at 14,000 crore rupees, after the cabinet set that as the minimum price for auction of 2G spectrum.

The base price for 5 megahertz (MHz), set by the government, is at the lower end of the band recommended by the Empowered Group of Minister (EGoM). The group recommended a price range of between 14k crore and 15k crore, according to reports.

The government is given time until end of August to conduct auctions by the Supreme Court of India but some experts feel the deadline is difficult to meet.

The new base price comes around six months after the Supreme Court cancelled 122 2G licenses issued by A Raja, the then Telecommunications Minister in 2008.

2G or second generation wireless telephone technology helps improve data transfer speed, quality and capacity.

The decision came from the union cabinet including P Chidambaram who this week took charge as India’s Finance Minister after a cabinet reshuffle.