Telecom EGoM slashes base price for 1,800 Mhz auction
An inter-ministerial group Friday recommended lowering the base price for 1,800 mega hertz (Mhz) spectrum by 30 percent for four circles which were left unsold in the auction conducted last month.
The four circles are Delhi, Mumbai, Karnataka and Rajasthan.
The Empowered Group of Ministers (EGoM) also decided to auction spectrum of 900 Mhz in Delhi, Mumbai and Kolkata with the sale of 1,800 Mhz.
"The EGoM has decided to auction the 1,800 MHz band in four circles and 900 MHz band in Mumbai, Kolkata and Delhi," Telecom Minister Kapil Sibal told reporters after the meet.
Last month's 2G spectrum auction only garnered Rs.9,407 crore from a minimum expected Rs.28,000 crore target.
The reason, industry said, was the high reserve price fixed by the government.
In the last auction, the reserve price for the four unsold circles for 1,800 Mhz were Rs.693.06 crore for Delhi, followed by Rs.678.45 crore for Mumbai, Rs.330.12 crore for Karnataka and 67.08 crore for Rajasthan circle.
Sibal added that auction process will be completed within this fiscal end.
"We will now be moving the cabinet for the approval on the pricing and we have also decided that we will complete the auction process within this financial year."