Day 2 of spectrum auction: Govt gets bids worth Rs 45,000 crore

Day 2 of spectrum auction: Govt gets bids worth Rs 45,000 crore

Telecom companies put in bids worth a total of about Rs 45,000 crore on the second day of the 2G spectrum auction on Tuesday, with premium 900 Mhz band in Delhi, Mumbai and Kolkata witnessing continuing demand.

“We are very happy the way auction is moving forward. We hope that we will get enough revenue to make sure that the Finance Minister (P Chidambaram) has a big smile on his face,” Telecom Minister Kapil Sibal told reporters after closing of bidding rounds on Day 2.

The budget 2013-14 had set a spectrum revenue target of Rs 40,874 crore for this financial year. The fiscal deficit at Rs 5.16 lakh crore had crossed 95 per cent of budget target in the first nine months of 2013-14.

“We estimate bids of approximate Rs 45,000 crore were received today (Tuesday). The auction momentum is good, we have seen excess demand for 900 MHz spectrum and also for 1,800 Mhz band. We will resume auction tomorrow (on Wednesday),” said Telecom Secretary M F Farooqui.

In November 2012, auctioning had ended in just two days, while in March 2013 it ended the same day it began. Now, even if bidders opt to pay the final auction price in instalments, the government will get at least Rs 11,790 crore, exceeding the target of collecting Rs 11,343 crore in upfront payments. Excess demand for 2G spectrum in 1,800 Mhz band was seen only in two service areas—Gujarat and UP West— resulting in a price increase.

Aggressive bidding was seen for the 900 MHz band, which is in short supply and is being auctioned in just three cities—Delhi, Mumbai and Kolkata—where licences of Bharti and Vodafone are to expire in November unless they buy radiowaves in this round of auctioning.

Narendra Modi or Rahul Gandhi? Who will win the battle royale of the Lok Sabha Elections 2019


Get real-time news updates, views and analysis on Lok Sabha Elections 2019 on Deccanherald.com/news/lok-sabha-elections-2019 


Like us on Facebook or follow us on Twitter and Instagram with #DHPoliticalTheatre for live updates on the Indian general elections 2019.

Liked the story?

  • 0

    Happy
  • 0

    Amused
  • 0

    Sad
  • 0

    Frustrated
  • 0

    Angry