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It's time CAG owns-up for 2G auction debacle

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Harmeet
New Update

Former Comptroller and Auditor General (CAG) official questioned CAG's estimates of presumptive loss of Rs. 1.76 lakh crore in 2G spectrum auction.

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RP Singh, a former director-general, Post and Telecommunications at the CAG said that his version of audit draft report, submitted in 2010, 'did not contain any major loss figure. According to that report the loss to the exchequer was estimated to be Rs 2,645 crore and not 1.76 lakh crore as being reported.

Moreover, he added that he had mentioned Rs. 37,000 crore can be recovered from those who were holding excess spectrum. The recently concluded auction of 2G spectrum managing to garner only Rs. 9,407 crore. The UPA government as well as the CAG have been receiving a lot of flak owing to this.

Mahesh Uppal, director, Com First (India), a firm dealing in regulatory affairs, said, "The government had no choice but go ahead with the auction because otherwise it would be accused of being partisan. The government had earlier estimated the reserve price at Rs 18,000, but then brought down to Rs 14,000, which again proved to be high. So a review will be necessary. Certainly the TRAI and CAG should be blamed because the analysis of both of these agencies has turned out to be extremely poor. TRAI and CAG need to own up to their responsibility for the poor analysis done in their respective agencies."

"The main reason is price. People need the spectrum, but the price is unacceptable. Moreover, the price determined in this auction will also affect the reserve price of the future auction, so people have been doubly careful. It is unhealthy to have financial targets. The govt must focus on growth targets and design auctions accordingly. It should review the auction design to evolve a spectrum allocation and pricing regime that helps growth in data and broadband markets," he added. Source: CIOL

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