The Agriculture Minister, Mr Sharad Pawar, has resigned as the Chairman of the Empowered Group of Ministers (EGoM) on Telecom. Mr Pawar said his association with the decision-making process could motivate vested elements to drag his name into the telecom controversy.
Earlier, there were allegations that Mr Pawar had links with one of the companies that was given a 2G licence in 2008. Corporate lobbyist Niira Radia had told the CBI that Mr Pawar may be controlling DB Realty, the company that owns Swan Telecom. But the CBI has found no proof to link the Agriculture Minister to the company.
Expressing his desire to quit the EGoM chair, Mr Pawar stated: “Attempts have been made in the past to unnecessarily drag me into the controversy surrounding the allocation of 2G spectrum. These allegations were false and ill-motivated, which I strongly refuted. At this juncture, I believe that my association in the decision-making process as the Chairman of the EGoM, may further motivate the vested elements to try to drag me in the controversy.” The Prime Minister has accepted Mr Pawar’s resignation sparking fears of further delays in deciding 2G spectrum auction rules.
Crucial decision
The EGoM was supposed to meet on Monday to take a crucial decision on spectrum pricing. The decision has already been delayed after the earlier Chairman, Mr Pranab Mukherjee, stepped down to facilitate his Presidential nomination. According to Government sources, the Home Minister, Mr P. Chidambaram, could be given the task of heading the Group.
Tough task
The EGoM has the tough task of deciding on the reserve price for auctioning spectrum with rival telecom players lobbying hard to get their way.
While the TRAI had suggested Rs 18,000 crore for 5 Mhz of spectrum, most of the telecom companies want this to be slashed by 80 per cent.
The Government has to complete the auction by August 31, according to an order from the Supreme Court, but no one seems to be willing to take a decision, given the controversial nature of the issue.