The BJP has criticised the government for approving the base price for auction of 2G spectrum lower than what the sector regulator Trai had proposed. The party BJP called it a blatant attempt by the Prime Minister and the Home Minister to reduce the price.
Seeking the justification behind setting the base price at Rs. 14,000 Crore which is 22 per cent lower than the TRAI recommendations BJP said that TRAI had recommended that even a hike of five paise per minute would help the service provider cover-up the so called legacy losses.
“Why did the Cabinet then decide on Rs. 14,000 Crore price for the spectrum? What was the basis of the reduction to Rs. 14,000 Cr when TRAI had recommended the price of Rs. 18,000 Cr," BJP spokesperson Rajiv Pratap Rudy asked.
Throwing a volley of question Rudy asked, "What were the considered reasons in the Cabinet? Has the Cabinet held a kangaroo sitting to reduce the price?
He said that Telecom Minister Kapil Sibal's theory of zero loss in 2G spectrum allocation was wrong. "If it was zero loss than how come the government has decided on a price of Rs. 14,000 crore," he .asked
This price is seven times higher than the price companies had paid during 2G spectrum allocation in 2008 when A Raja was the Telecom minister.
Rudy termed earlier 2G spectrum allocation as a loot, saying that even now TRAI recommendations have not been accepted though it is a constitutional body.
He said that as per the amendment to Section 11 of the TRAI Act, if the Cabinet does not accept its recommendation then the new proposal has to be sent to TRAI for approval.