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PM weighs options ahead of SC-directed 2G auction
Faced with a four-month deadline set by the Supreme Court to go in for auction of 2G spectrum, Prime Minister Manmohan Singh on Saturday undertook a stock-taking exercise of the implications and ramifications of the judgement.
The PM held a meeting with his senior colleagues Finance Minister Pranab Mukherjee, Telecom Minister Kapil Sibal, Home Minister P Chidambaram and Law Minister Salman Khurshid to discuss the various options available before the Government. However, meeting which was described as initial step ended without taking any decision over the issue.
According to sources, the Government has decided to seek the opinion of Attorney General GE Vahanvati, who attended the meeting along with Petroleum Secretary R Chandrashekhar, on the entire issue. Vahanvati’s opinion will be crucial in the Government deciding on whether to file a review petition against the Supreme Court judgement that has cancelled the 122 licences granted to nine companies by former Telecom Minister A Raja.
In depth consultations are required as there are some apprehension in the Government about the FDI scenario in the country following the judgement. The matter has even taking a diplomatic turn with countries like Norway expressing concern over the future of investments by their countries’ companies.
However, a section of the Congress feels that the Government should desist from filing a review petition as at present the entire blame has gone to Raja for the 2G scam but if the Centre challenges the court order it would amount to defending the former Telecom Minister’s decision. Also in case of any adverse judgement, the entire blame in future will come to the UPA Government and it would not have any escape goat.
Sibal said the meet was meant to inform the PM and the group about the salient features of the judgement and its consequences and implications and the basis on which the judgment has been rendered.
“It was an exercise for informing the group. We were not required, nor did we seek any decisions from the PM or the group. That was not the intent of the exercise,” he said and added that the Telecom Secretary gave a “full presentation on what the judgement is about, what it means and when we move forward. Ultimately all the matters have to go to Cabinet so Government has to be informed before that in order to take a decision,” he said.
The meeting also reported to have deliberated on issues like whether to cancel licences issued prior to 2008 to companies like Bharti Airtel and Tata to create a level-playing field now for all operators who would like to bid for licences.
The Government will also have to decide about the rules for auction of nearly 550 Mhz of spectrum vacated by the nine telecom operators whose 122 licences have been cancelled. The DoT is reported to have prepared a draft Cabinet note on auctioning the spectrum freed by the licencees. But the Government has to take the crucial decision on whether only the companies whose licenses have been cancelled are to participate in the auction or even existing ones can participate in it.
In this context, the Telecom Regulatory Authority of India (TRAI) has floated a pre-consultation paper seeking comments from stakeholders on guidelines for spectrum auction as directed by the SC.
However, the situation has become difficult with some foreign operators like Norwegian Telenor — a shareholder in Uninor — and Russian Sistema, a partner in Shaym-Sistema, whose licences have been cancelled, putting pressure on the Government demanding safeguarding of their investments.
Faced with a four-month deadline set by the Supreme Court to go in for auction of 2G spectrum, Prime Minister Manmohan Singh on Saturday undertook a stock-taking exercise of the implications and ramifications of the judgement.
The PM held a meeting with his senior colleagues Finance Minister Pranab Mukherjee, Telecom Minister Kapil Sibal, Home Minister P Chidambaram and Law Minister Salman Khurshid to discuss the various options available before the Government. However, meeting which was described as initial step ended without taking any decision over the issue.
According to sources, the Government has decided to seek the opinion of Attorney General GE Vahanvati, who attended the meeting along with Petroleum Secretary R Chandrashekhar, on the entire issue. Vahanvati’s opinion will be crucial in the Government deciding on whether to file a review petition against the Supreme Court judgement that has cancelled the 122 licences granted to nine companies by former Telecom Minister A Raja.
In depth consultations are required as there are some apprehension in the Government about the FDI scenario in the country following the judgement. The matter has even taking a diplomatic turn with countries like Norway expressing concern over the future of investments by their countries’ companies.
However, a section of the Congress feels that the Government should desist from filing a review petition as at present the entire blame has gone to Raja for the 2G scam but if the Centre challenges the court order it would amount to defending the former Telecom Minister’s decision. Also in case of any adverse judgement, the entire blame in future will come to the UPA Government and it would not have any escape goat.
Sibal said the meet was meant to inform the PM and the group about the salient features of the judgement and its consequences and implications and the basis on which the judgment has been rendered.
“It was an exercise for informing the group. We were not required, nor did we seek any decisions from the PM or the group. That was not the intent of the exercise,” he said and added that the Telecom Secretary gave a “full presentation on what the judgement is about, what it means and when we move forward. Ultimately all the matters have to go to Cabinet so Government has to be informed before that in order to take a decision,” he said.
The meeting also reported to have deliberated on issues like whether to cancel licences issued prior to 2008 to companies like Bharti Airtel and Tata to create a level-playing field now for all operators who would like to bid for licences.
The Government will also have to decide about the rules for auction of nearly 550 Mhz of spectrum vacated by the nine telecom operators whose 122 licences have been cancelled. The DoT is reported to have prepared a draft Cabinet note on auctioning the spectrum freed by the licencees. But the Government has to take the crucial decision on whether only the companies whose licenses have been cancelled are to participate in the auction or even existing ones can participate in it.
In this context, the Telecom Regulatory Authority of India (TRAI) has floated a pre-consultation paper seeking comments from stakeholders on guidelines for spectrum auction as directed by the SC.
However, the situation has become difficult with some foreign operators like Norwegian Telenor — a shareholder in Uninor — and Russian Sistema, a partner in Shaym-Sistema, whose licences have been cancelled, putting pressure on the Government demanding safeguarding of their investments.
