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The government has modified the policy for liberalisation of administratively allotted spectrum where market determined prices were not available. This will enable optimal utilisation of spectrum by allowing trading and sharing of such airwaves. Such spectrum can be released by paying the most recent reserve price.
The decision was taken on the basis of the recommendations of the Telecom Regulatory Authority of India. The Cabinet also approved TRAI’s suggestion that the government can provisionally liberalise spectrum at the price suggested by the regulator for auction and take an undertaking from the operators that they will pay the difference when the auction takes place.
Spectrum trading and sharing rules released last year required liberalisation of administratively allotted spectrum by payment of auction determined prices. “However, 800 Mhz spectrum in certain circles did not have such market determined prices which required an alternative mechanism for liberalisation,” said Ravi Shankar Prasad, Minister for Communications and Information Technology, after the Cabinet meeting on Wednesday.
Anil Ambani Group’s Reliance Communications would be an immediate beneficiary of the move.
The Cabinet’s decision will allow operators to use any technology to deliver third and fourth generation (3G/4G) mobile services. “This will facilitate optimal utilisation of spectrum by introducing new technologies, sharing and trading of spectrum,” an official statement said.
Oil import policy By an another decision, the Cabinet gave public sector oil companies the power to formulate their crude oil import policy. This will also give oil PSUs more operational and commercial flexibility.
The Cabinet also gave an ex-post facto approval for the implementation of One Rank One Pension. Financial implications on account of grant of OROP including Pre-Matured Retirees cases would be ₹10,925.11 crore for payment of arrears and annual financial outgo would be ₹7,488.7 crore.
“Till March 31, 2016, 15.91 lakh pensioners have been given the first instalment of OROP, which amounts to ₹2,861 crore,” Prasad said.
Approval was also given for increasing the framework agreement between Exim Bank of India and a consortium of Iranian banks lead by the Central Bank of Iran for financing the purchase of goods and services from India to ₹3,000 crore from ₹900 crore.
The Cabinet also gave its nod to Recommendations on Fiscal Deficit Targets and Additional Fiscal Deficit to States during Fourteenth Finance Commission (FFC) award period 2015-20 under the two flexibility options recommended in its Report (volume-I).
Since the year 2015-16 is already over, the States will not get any benefit of additional borrowings for 2015-16. However, the implications for the remaining period of FFC award, i.e., 2016-17 to 2019-20, would depend upon respective States’ eligibility based on the criteria prescribed by FFC.
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