The Planning Commission's Infrastructure Division has projected investments of nearly Rs 9 lakh crore from private players in the telecom sector during the Twelfth Five Year Plan.

This is about double the investments made by private players during the Eleventh Plan. The Planning Commission expects fresh investments to come into the sector during the auctions for 2G and 4G spectrum to be held over the next 2-3 years.

According to the Commission, the overall investments in the telecom sector would cross Rs 10 lakh crore, including investments from PSUs, compared to Rs 5.6 lakh crore investments made during the 11th Plan.

These estimates are significantly different from the estimates of the Working Group for the Twelfth Plan. The Working Group had proposed an overall investment of Rs 6.5 lakh crore and Rs 5.2 lakh crore from private players.

“One of the key reasons for the difference between the Working Group estimates and the projected investment by Infrastructure Division is the inclusion of licence fee and the spectrum charges,” explained a senior Government officials.

The revised estimates assume significance in the light of the prevailing mood in the telecom sector. Most private players are wary of investing given the current regulatory uncertainty. “The projections can be a reality if the Government resolves the current regulatory imbroglio related to 2G spectrum. Else, these numbers could fall flat,” said an industry representatives.

Investments made by Government-run agencies are not expected to see any significant increase. Compared to an investment of Rs 1.15 lakh crore in the 11{+t}{+h} plan, the Central agencies are expected to invest Rs 1.28 lakh crore. “This is because BSNL and MTNL do not have any significant expansion plan,” the official said.

tkt@thehindu.co.in

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