Govt seeks time till Nov 12 to begin spectrum auction

The Government has moved the Supreme Court seeking a "final" extension of the deadline for 2G spectrum auction process.

It has sought time till November 12 to start the auction, and another 40 days to complete the auction as well as to allocate spectrum and grant licences.

"This application for a further extension of time is made in public interest to ensure that the auction yields maximum revenue to the Government. It would be therefore in the interest of justice to grant the extension needed," the Government said in its 11-page application.

This is the second extension that the Government has asked for. Earlier, the apex court had asked the Government to complete the auction by August 31. It had also given time to the Government to cancel the licences given in 2008 by September 7.

The Government claimed that it "has already taken several steps and is taking further steps" to ensure prompt implementation of the apex court order and for the expeditious conduct of the auction.

It submitted that the additional time sought was "for the completion of an auction process that will enable the auctioneer and bidders to carry forward the auction in a proper manner that will ensure that the directions of the Supreme Court are implemented in letter and spirit."

It further said, "In order to meet the objectives of the auction, sufficient time needs to be given to the auctioneer so that it can carry out all the steps for the auction in a proper manner. At the same time, enough time needs to be given to the bidders to enable them to take all necessary steps to participate effectively in auction including raising funds/resources, obtaining internal approvals etc."

Explaining further, the Government said during the process of scrutiny of applications for the grant of licences, a necessity may arise for seeking clarification for asking for additional documents. "Similarly, adequate time will need to be given for the submission of bank guarantees before the grant of licences,” it added.

DISCOVERY OF MARKET PRICE

The Centre said effective participation and proper discovery of market price of spectrum would result only if sufficient time is provided. If adequate time is not given, the objectives laid down by the apex court for allocating spectrum through auction at market prices may not be fully achieved and the Government's revenues may be impacted adversely, the Centre warned.

The Government also said the revised schedule for auction represents the minimum time required for the conduct of a duly publicised auction that is fair and impartial. It pointed out that the time contemplated in the revised schedule is significantly shorter than the time taken for the 3G auction in 2010, adding that, "it is apprehended that a reduction of this time-frame may impact the successful conduct of the auction as the process involves several critical steps."

Referring to the 3G auction in 2010, the Government said activities from commencement of work by the auctioneer to the commencement of auction process took 542 days. "As against this, the present auction process contemplates that the auction will be commenced within 97 days of the commencement of work by the auctioneer," it said.

The Union Cabinet had recently fixed the base price for GSM spectrum in the 1800 Mhz band at Rs 14,000 crore, while the same for CDMA in the 800 Mhz band is Rs 18,200 crore.

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