PM likens 2G loss to subsidies

With the UPA facing a string of scandals, Singh, who personally enjoys a reputation of integrity, sought to directly address questions in a nationally televised news conference raised by electronic media editors on whether the government was capable of righting the litany of problems that it is having to tackle.

In the course of the 70-minute interaction, the Prime Minister conflated the issue of loss of revenue to the exchequer caused by malfeasance in the allocation of 2G telecommunications spectrum with government subsidies for various welfare programmes. Pressed on the issue of loss of Rs 1.76 lakh crore to the exchequer on account of undervaluation of valuable 2G spectrum, Singh contended that the CAG’s assessment of revenue loss was presumptive.

He sought to argue whether the thousands of crores of rupees which the Centre doled out as subsidy on fertiliser, LPG and foodgrain could also be considered a loss of revenue to the government.

‘Naked loot’
This provoked a sharp reaction from the Left parties with CPM leader Sitaram Yechury taking the Prime Minister to task for equating the loss of revenue in 2G spectrum allocation with subsidising foodgrains for the poor.

“This is something that is completely unacceptable. Subsidising the poor is one aspect but subsidising the rich and saying that it is necessary, is just naked loot of the country,”  Yechury told reporters here. BJP president Nitin Gadkari also seized the opportunity, saying: “He has completely failed in checking corruption. You cannot justify corruption in the name of coalition politics.”

PM’s choice
Hinting that the controversial former telecom minister A Raja, the main suspect in the 2G scam, was not his choice to be in the Cabinet, Singh said: “In a coalition government you can suggest your preferences but you have to go by what the leader of that coalition partner ultimately insists.

Raja and (Dayanidhi) Maran were the choice of the DMK and at that moment I had no reason, frankly speaking, that anything seriously wrong had been done.”

Responding to a question on Raja’s reinduction in 2009 despite complaints, the Prime Minister said: “I did not feel I had the authority to object to Raja’s entry because, quite honestly in May 2009, although complaints were coming in, some from companies not benefitting (from the telecoms spectrum allocation) ... I was not in a position to make up my mind that anything seriously was wrong.”

But he defended his own actions, particularly in the telecom scandal, pointing out that at the time the allocations were being made, different ministries argued against an auction.

To a question on how spectrum was allocated, Singh said “that was never discussed with me”. Indicating that a joint parliamentary committee would be constituted to probe the 2G scam, Singh said he was ready to appear before the panel, while ruling out his resignation as Prime Minister.