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Govt receives commitments worth Rs 1.08 lakh crore on Day 13 of spectrum auction

19 Mar 2015 Evaluate

The government received commitments of Rs 108,000 crore from telecom operators at the end of 80th round of bidding on Wednesday, which was the 13th day of radio frequency spectrum e-auctions. This is little higher compared to Rs 107,000 crore on the 12th day. The auction will continue on Tuesday as about 11% of spectrum is yet to be sold.

Robust bidding was witnessed in 1800 MHz, 2100 Mhz 900 MHz and 800 MHz band, with majority of service areas being sold at a premium over reserve price. However, DoT has barred from publishing final results without Supreme Court’s consent. A hearing in the apex court in this regard is scheduled for March 26.

The biggest ever auction of spectrum in the 800, 900, 1,800, and 2,100 MHz bands had started on March 4. In the current round of auction, the government is selling a total of 380.75 MHz of spectrum in the premium , 900 MHz band, 800 -MHz and 1,800 MHz bands, and 5 MHz in the 2,100-MHz band across 17 of the 22 telecom areas of the circles in the country. The government had initially estimated to earn between Rs 80,000 crore and Rs 1 lakh crore from the sale of radio waves. However, this seems to be way above estimates, with the counting still continuing. From the last spectrum auction held in February 2014, the government had raked in Rs 62,162 crore.

Notably, these commitments come over and above the Rs 200,000 crore that India Inc has already bid under the two phases of auctions for award of coal blocks. But the proceeds from this auction will go to the respective state governments over 30 years.

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