Dr.Murli Manohar Joshi
Public Accounts Committee
Government of India
6 , Raisena road , New Delhi 110001
I am sure this finds you fine .It was really nice talking to you yesterday. I wish to submit the following for your kind consideration
Recently , the government has raised Rs. 1.06 Lac Crore from the 3 G & BWA auctions. Though it is a different issue that the government was expecting a modest Rs. 32000.00 Crore from the auction ! The following should be considered
- What was the basis of the government’s projections ? Was it a failure on the part of the government that the proceeds of the auctions exceeded by 3 times of the projections from the government ? This clearly gives a reason to believe that there was a systemic failure on the part of the government and it shows up in government’s failure to arrest price rise ( inflation )
- Was the spectrum auction and sale the best option ?
- If the government went for a zero price or nominal booking price, and allotted spectrum for the entire India as one circle with say a 25 % – 30 % of the recurring revenue share from the telecom providers, would it not be better in serving the interest of the government in the long term ? It would have eventually generated much higher return per year and every year rather than one a time high auction fee ! What was the basis of deciding one time auction fee with an expected collection of Rs.32000 crore ? This money ( Rs.1.06 lac crore ) might give temporary sound bites to Pranab Da ( and the PM ) for no efforts of his or Mr. Raja . But the fact is that , it will put a strain on the telecom companies and will also suck the liquidity from the markets . This will also cause a long term loss to the government as it could have gained immensely , had it gone for a lower or zero initial fee and a larger share in the recurrent revenue from the telecom providers. This is a myopic policy of this government and a big loss to the exchequer
- What was the total loss in previous auctions done in arbitrary allocation of telecom spectrum, and what is the progress in the CBI investigation ? Why has the FIR lodged by the CBI not named anyone ? When the senior most minister or the bureaucrat should be named in the FIR , what has prompted the CBI to lodge the FIR against unnamed persons ?
- Since Rs.10.6 Lac Crore is already raised through the auctions, i suggest that the government allocates the 10 % the money raised in India Innovation and Entrepreneurship fund to promote innovation and entrepreneurship amongst youth of the nation
I am sure you will take up these matters in appropriate forums . We look at your leadership in addressing some important issues concerning the nation .
With best regards
Rajendra Pratap Gupta