Business Daily from THE HINDU group of publications
Saturday, Jan 08, 2011
ePaper | Mobile/PDA Version | Audio | Blogs

Foreign Exchange

Group Sites

Home Page - Telecommunications
Info-Tech - Corporate Governance
Industry & Economy - Economic Offences
Sibal has got it wrong, say experts

No justification for giving spectrum in 2008 at 2001 prices.

Our Bureau

New Delhi, Jan. 7

Industry experts and analysts said that the claims by the Communication and IT Minister, Mr Kapil Sibal, that there was no loss to the country due to the 2G spectrum policy was ‘incorrect' and ‘disturbing'

“The contention being proposed by Mr Sibal is disappointing to put it politely and ridiculous and laughable if I am permitted to use stronger words. To contend that there has been no loss to exchequer in the face of overwhelming evidence of at least two private companies profiteering from this cheap spectrum, is to insult the intelligence of the people of India and media,” said Mr Rajeev Chandrasekhar, Member of Parliament.

“The Minister Mr Sibal must also realise spectrum and other national assets are not a private dispute between the BJP and the Congress.

“They belong to the people of India and Government's handling of this has to be meeting the test of right and wrong and not simply relying on precedence of history or conduct of a previous Government. Most disturbingly, the attempt to give a clean chit and put forth an argument that there is no loss raises questions about its timing when there is a Supreme Court-monitored CBI investigation into this whole scam,” he added.

Mr B.K. Syngal, former Chairman of Videsh Sanchar Nigam Ltd, said the Government has failed to justify how it could give 2G licences in 2008 at 2001 price. “The loss to national exchequer should be seen in the light of how the new licensees later on sold equity stake to foreign players at 6 times the money paid as entry fees,” Mr Syngal said.

Mr Mahesh Uppal, Director at telecom consultancy firm Com First, said that it was more about flawed spectrum allocation policy than it being an issue of losses to the exchequer. “There is sufficient evidence to indicate that both the NDA and the UPA Governments have followed a non-transparent spectrum management and therefore neither can take a holier-than-thou-art view. Without getting into numbers on presumptive loss, the core issue of spectrum allocation needs to be addressed,” Mr Uppal said.

Other market watchers said that Mr Sibal was trying to deflect the issue away from corruption and the involvement of large corporates by turning it into a political battle with the opposition.

More Stories on : Telecommunications | Corporate Governance | Economic Offences

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Sibal has got it wrong, say experts

Delhi court says petition against Raja ‘maintainable'
No loss to Govt from 2G spectrum allocation: Sibal
India could be fastest growing economy by 2050: PwC
Hike in ration grain prices for above poverty line deferred
Essar Shipping to invest $1 billion in fleet expansion
Tata Steel-Nippon venture to make auto grade steel in Jamshedpur
Spy scam gives Renault a shock
MNCs offer staff part-time option — for lower pay, of course
Decks cleared for Patni sale to iGATE
Scrap Reddy brothers' mining lease, says apex court panel
China makes its mark on Europe; pledges to buy Spanish bonds
Morgan Stanley on sell mode — bulk deals show
Sensex tanks 493 points on inflation worry, rate-hike fears

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2011, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line