Audit body quantified 2G allocation loss | delhi | Hindustan Times
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Audit body quantified 2G allocation loss

Director General of Audit, Post and Telecommunications RP Singh in a draft report quantified a probable loss in the allocation of 2G-spectrum licences, if they were sold through auction, as done for 3G-spectrum. HT reports.

delhi Updated: Sep 22, 2011 01:05 IST
HT Correspondent

Director General of Audit, Post and Telecommunications RP Singh in a draft report quantified a probable loss in the allocation of 2G-spectrum licences, if they were sold through auction, as done for 3G-spectrum.

The draft was prepared in May 31, 2010. The report said, “Charging for 2G spectrum for roll-out was never recommended by TRAI or the government has never contemplated any charges for the spectrum other than entry fee.”

On the probability of losses, the report said, “If 2G rates are to be pegged at the rates discovered through the auction for 3G-spectrum in May 2010, the impact would be Rs 10,2497 crore”.

It referred Comptroller and Auditor General (CAG) to take views from ministry of law and justice, ministry of company affairs, TRAI along with other agencies.

Interestingly, the report of these ministries have not corroborated CBI's stand in the scam. http://www.hindustantimes.com/images/HTPopups/210911/22-09-11-metro9.jpg

The audit body told the CAG that observations of Competition Commission of India (CCI) on auctioning 2G-spectrum is not mentioned in the draft report since the CCI had made the observations without going into the details of specifics.

The draft report was sent to CAG, as the opinion of the audit body. After examining various aspects, the report said, “Loss to the government due to

the decision not to auction 2G-spectrum has not been quantified in the draft report. But based on the voluntary offer from an operator for a pan India licence, the impact of non-revision of the price for

2G-spectrum would work out to Rs 65725 crore. This is not included in the draft report because the operator withdrew their offer in the Delhi High Court”.