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Govt set to garner Rs 1 lakh crore from spectrum auction

23 Feb 2015 Evaluate

After yielding close to a lakh crore from the sale of coal blocks, the government is now looking to garner similar amount of money from the sale of radio-waves with eight telecom operators depositing about Rs 20,435 crore as earnest money for spectrum, thereby reflecting fierce bidding which is likely to take place for the spectrum auction starting March 4. Otherwise, for the entire amount of spectrum put on auction, an earnest money deposit (EMD) of Rs 12,000 crore would have served the purpose.

Based on the reserve price, the government estimated to garner over Rs 82,000 crore from the sale of radio-waves for providing 2G as well as 3G services. While, the auction of 2G spectrum in 800 MHz, 900 Mhz and 1800 MHz bands at the reserve price is expected to fetch the government Rs 64,840 crore, it is looking at raising Rs 17,555 crore at the minimum on auction start price for the 2,100 Mega-Hertz band or 3G spectrum. However, with record EMD, the final earnings could be more than Rs 1 lakh crore.

RJio has submitted the highest EMD of about Rs 4,500 crore, followed by Bharti Airtel Rs 4,336 crore, Idea Cellular Rs 4,000 crore, Vodafone Rs 3,700 crore, Tata Teleservices Rs 1,500.25 crore, Reliance Communications Rs 1,175 crore, Uninor Rs 724.95 crore and Aircel Rs 500 crore.

Notably, the government received EMD of Rs 8759.75 crore from eight companies for the auction conducted in February 2014 , while In 2010, nine telecom companies jointly submitted EMD of Rs 3,515 crore for 3G auctions and 11 companies Rs 2,291.25 crore for broadband wireless access spectrum that can be used for 4G services.

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