BJP slams government over pricing spectrum at 14,000 crore

BJP today slammed thegovernment for pricing telecom spectrum at Rs 14,000 Crorewhich is 22 per cent lower than the TRAI recommendations andsought to know what prompted the Union Cabinet to take thisdecision.

"TRAI had recommended that even a hike of five paiseper minute would help the service provider cover-up the socalled legacy losses... Why did the Cabinet then decide on Rs14,000 Crore price for the spectrum? What was the basis of thereduction to Rs 14,000 Cr when TRAI had recommended the priceof Rs 18,000 Cr," BJP spokesperson Rajiv Pratap Rudy said.

He alleged that not even once has the governmentprovided any justification for deciding this price which is 22per cent lower than what was recommended by TRAI.

"What were the considered reasons in the Cabinet? Hasthe Cabinet held a kangaroo sitting to reduce the price? BJPfeels this is again a blatant attempt by the Prime Ministerand the Home Minister to reduce the price," Rudy said.

The Cabinet, chaired by Prime Minister Manmohan Singh,yesterday agreed to price 5 MHz of airwaves in the 1,800Mhz band at the lower end of the Rs 14,000 crore to Rs 15,000crore reserve price band suggested by a ministers' group.

Rudy said this new pricing, though low, proves TelecomMinister Kapil Sibal's earlier contention that there was "zeroloss" in 2G spectrum allocation was wrong. "If it was zeroloss than how come the government has decided on a price of Rs14,000 crore," he said.

This price is seven times higher than the pricecompanies had paid during 2G spectrum allocation in 2008 whenA Raja was the Telecom minister. .

Describing the earlier 2G spectrum allocation as a loot, Rudy said even now TRAI recommendations have not beenaccepted though it is a constitutional body.

The BJP MP claimed that as per the amendment toSection 11 of the TRAI Act, if the Cabinet does not accept itsrecommendation then the new proposal has to be sent to TRAIfor a nod.

Rudy said BJP stand on the 2G spectrum allocation wasvindicated earlier when the Supreme Court had cancelled 122licenses.

"Even the CBI has said the loss in spectrum allocationwas Rs 30,000 Crore," he said.

He maintained that the speculative loss theory of thegovernment has been "thrown out" and reiterated the BJP standthat even Prime Minister Manmohan Singh cannot free himself ofthe charge, along with then Finance Minister P Chidambaram,that the country had suffered a loss. He added that Raja hadto go to jail for this.

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