Small BusinessGovt to start 3G auction on Feb 25
The government has decided to go ahead with the auction of three slots of third generation (3G) spectrum for all 22 telecom circles on February 25. It will be completed by March 3-5.
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The announcement comes within a few days of Finance Minister Pranab Mukherjee directing Communications Minister Andimuthu Raja to complete the bid by February-end for the revenue collected from it to get reflected in the Budget for 2009-10. The government had fixed a target of Rs 30,000 crore from the auction and had budgeted for the current financial year to bridge the fiscal deficit.
The consensus for the date was brought about by an inter-ministrial committee set up by the empowered group of ministers (EGoM) on 3G, of which Mukherjee is the chairman. EGoM will now have to endorse the date. It is expected to meet in a few days. Industry sources say it is a mere formality.
Successful bidders would have to make a payment upfront within 15 days of winning 3G licence. Spectrum would be allotted in the first week of August.