The Hindu Business Line : CPI(M) seeks enquiry into 2G spectrum allocation policy

New Delhi, Nov. 6 The Communist Party of India (Marxist) has sought an enquiry into the policy of allocating 2G spectrum on the principle of first-come-first-served basis.

“For the release of the fourth licence and the spectrum required, the Communications Ministry adopted a completely inexplicable principle of ‘first-come first-served’ for allocating the licence as well as a licence fee based on 2001 prices.

“These 2G licences were priced at 2001 levels, allegedly to keep the costs low for consumers. However, this was not ensured through the licence terms and conditions. As a result, the parties who had secured these licences have sold or are selling their shares at huge profits,” the CPI (M) said in a press release.

It said that the total loss to the exchequer by giving away 2G GSM spectrum in this way, including to the CDMA operators, is over Rs 60,000 crore and must rank as one of the biggest financial scam of all times in the country.

Issue focus

“Instead of redressing what has become an open scandal, the Government has dealt with the question as to whether these companies (Unitech and Swan) can sell their shares legally. This is not the issue. The issue is that if scarce national resources are given away at throwaway prices and these are then sold at many times that price, what should the Government do?

“It should either invoke fair trade practice/anti-monopoly sections, or look at other operative sections of the licence to see how this can be prevented. If no other recourse is available, it must levy a windfall tax on such speculative transactions,” the statement said.

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