Despite getting lukewarm response from the earlier two auctions, the Government today said that it is confident of meeting the revenue target of Rs 40,000 crore from spectrum sale this fiscal.
“We will exceed whatever is the budget provision for the receipt of money from auction for this year...Rs 11,000 crore is the receipt (from the upcoming auction), what it means is the total amount will be much more than that...around Rs 40,000 crore,” Telecom Secretary, MF Farooqui, told reporters here.
He was addressing the media on the forthcoming India Telecom-2013 meet to be held from December 5-7, which will be inaugurated by Prime Minister, Manmohan Singh.
Farooqui said that the Government is hopeful that all the spectrum put on auction table would be sold out.
“We are very confident that these auctions are going to be successful and we are very confident all the spectrum that is to be auctioned will be sold,” Farooqui said.
Spectrum reserve price
The Telecom Regulatory Authority of India (TRAI) had recommended up to 60 per cent cut in auction reserve price for spectrum in the 900 MHz band in Delhi, Mumbai and Kolkata circles. It had also suggested 37 per cent cut in reserve price for spectrum in the 1800 MHz band.
However, Telecom Commission, the highest decision-making body of the Department of Telecom (DoT), had recommended raising the reserve price of pan-India mobile phone spectrum by 15 per cent over the one suggested by TRAI, and 25 per cent higher in the case of key circles like Delhi and Mumbai.
The Empowered Group of Ministers has approved the price recommended by the Telecom Commission.
Total revenue target
DoT is likely to conduct the third round of spectrum auction by January. The Government has set a total revenue target of Rs 40,874.50 crore this fiscal, including auction amount, one-time spectrum charge and annual regular licence fee.
The Government had got Rs 9,407.64 crore from the November auction last year and Rs 3,639 crore from the March auction.
Farooqui said that the mergers and acquisitions guidelines are also expected to be finalised before the auctions.