The Joint Parliamentary Committee (JPC) probing the telecom licensing and pricing policies since 1998 in its entirety fired its first salvo on Wednesday. It has directed the Telecom Secretary to quantify the losses suffered by the Government on account of the “migration package” and slew of other concessions extended to telecom operators under the New Telecom Policy (NTP) in 1999.
The CAG report (No 6) of 2000 had “very adverse remarks” about the migration package and categorically mentioned that a “huge loss” was suffered by the exchequer on account of this package. But the Comptroller and Auditor General of India had for certain reasons not quantified the losses. The migration package allowed telecom operators to shift from fixed licence to revenue-share regime.
“The committee today wanted the Telecom Secretary to quantify the losses suffered by the Government on account of this package and concessions. He (Telecom Secretary) will have to report to the committee within two weeks the losses then suffered by the exchequer. There are also other information that has to be provided by his department in this timeframe,” Mr P.C. Chacko, JPC Chairman, told reporters here.
The migration package was approved on July 6, 1999, by the Cabinet of the National Democratic Alliance Government. As this decision was taken on the advice of the then Attorney-General (Mr Soli Sorabjee), the JPC today decided to call him as a witness.
“Migration package itself caused losses to the government. When there was a transfer from the fixed licence regime to revenue sharing regime, there was a loss. There was a commitment by the then licensees. The amount they have paid and their commitment-- the difference is the loss. There were also losses on account of other concessions,” Mr Chacko said.
Mr Chacko also asserted that there was no division on political lines among the JPC members during today's deliberations.