The Finance Ministry has asked the Telecom Department to quantify the cost the exchequer will have to bear for implementing the proposed new telecom policy.
The proposed policy envisages a number of schemes such as the Modified Special Incentive Package for electronic manufacturing and sops for telecom gear exports, that could require huge Government outlay.
The Department of Telecom had moved a note seeking Cabinet's approval for the new policy. In response to the draft note, the Finance Ministry said “Since the approval of these initiatives by the Cabinet will result in substantial demands on the exchequer (implicit), the draft Cabinet note should also be accompanied by a financial memorandum providing estimates for the proposed new telecom policy.”
The Finance Ministry has also raised objections to making revenue generation for the Government as a secondary objective under the new policy.
“Revenue maximisation cannot be secondary objective in new telecom policy 2012,” the Finance Ministry said, adding that even under the NTP 1999, which is being followed currently, there is no mention of revenue generation being secondary.
The Finance Ministry gets about Rs 30,000 crore from the telecom sector every year in the form of licence fees and spectrum charges. In 2010, it received over Rs 1 lakh crore from selling 3G and broadband spectrum.
The Telecom Ministry's plans for a new telecom policy have hit a roadblock with a number of other Ministries raising objections to various proposals.
While the Commerce Ministry has raised concerns over the move to give preferential access to locally manufactured telecom products, the Department of Financial Services does not want the telecom sector to be included in infrastructure financing schemes.
In addition, the Department of Space wants spectrum earmarked for satellite broadband services in the proposed policy.
The policy was supposed to have been presented to the Cabinet for approval on Thursday but the Telecom Ministry withdrew it at the last minute owing to the differences, according to top Government sources.