Union finance minister Arun Jaitley is hoping to garner Rs. 42,865 crore from spectrum auction in 800,900 and 1,800 megahertz bands and other communications services in 2015-16.
The government, which was aiming to get Rs. 65,000 crore from spectrum auctions on March 4, can get an estimated additional Rs. 20,000 crore this fiscal itself following a plan to sell radio waves in the 2,100 megahertz (MHz) band of radio waves for use by telecom operators.
The government has announced a reserve price of Rs. 3,705 crore per MHz of the 2,100 Mhz spectrum for a 15-year period.
During the spectrum auctions held in 2010 for the 2,100 MHz band with a reserve price of Rs. 700 crore per MHz spectrum, the government was able to attract Rs. 3,350 crore per MHz.
However, the base price suggested by the Telecom Commission is about 11% higher than what telecom firms paid for in the 2010 auction.
It is also 36% higher than the Rs. 2,720 crore per Mhz recommended by the Telecom Regulatory Authority of India.
The government sold 440 MHz in the 2100 MHz band in 2010. This year the planned sale is for 85 Mhz.