Cabinet to decide on spectrum prices
“If some of the reforms are implemented at an early date and some of the negative perceptions about the Indian economy and about India are over come quickly, then India can easily get to a 9 per cent growth path again,” he said.
The union cabinet is set to take a final call on the prices of telecom spectrum and one-time fees payable by incumbent telcos.
Days after Agriculture Minister Sharad Pawar turned down the Chairmanship of the Empowered Group of Ministers (EGoM) on Spectrum pricing, the Cabinet is expected to take on the responsibility of fixing the final price for spectrum auction. Earlier, the EGoM had the mandate to take a final call on pricing of spectrum.
After the decision of Pranab Mukherjee to step down as Finance Minister, the government has been finding it tough to find a new successor to head the EGoM on spectrum pricing. On top of that, the cabinet has recently also decided to refer the issue to one-time fee on spectrum to the EGoM. On both the issue of pricing and one-time fee, the EGoM will function like any other group of ministers (GoM) and report back to the cabinet.
The decision by an EGoM or ‘empowered’ GoM is not required to be approved by the cabinet while the GoM can only make recommendations, which require cabinet approval.
“For any specific issue or any other issue which is not within the terms of the EGoM, it can be asked to give only recommendation, the final decision for which will be taken by the cabinet,” sources told NDTV.
The EGoM, however, will continue to take a final decision on issues like spectrum usage charge, auction modalities, terms of payment and rollout obligations for telecom companies which participate in upcoming auction.
The Supreme Court has set a deadline on August 31 for the auction process to be completed. But an inter-ministerial committee has indicated that at the present pace of decision making the deadline is likely to be missed. The government may have to seek an extension of the deadline from the apex court.