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Updated: October 20, 2013 19:07 IST

2G verdict will affect other sectors: Sibal

PTI
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Union Telecom Minister, Kapil Sibal addressing a press conference on the spectrum policy in New Delhi recently.
PTI Union Telecom Minister, Kapil Sibal addressing a press conference on the spectrum policy in New Delhi recently.

The Supreme Court judgement cancelling 122 telecom licences allocated on first-come-first serve basis has ramifications for other sectors like mining where the same principle is adopted, Telecom Minister Kapil Sibal has said.

“I have been saying this repeatedly that the impact of the judgement is far-reaching. It has implications not only on the (telecom) sector but on other sectors as well,” Mr. Sibal said.

The apex court, cancelling licences allocated by the then Telecom Minister A. Raja, had stated that auction was the best way for allocation of scarce natural resources. The court had also defined natural resources as both renewable and non-renewable.

Mrr. Sibal added that the government is studying the implications of the judgement and would take a view on the way how it should proceed.

“We will do that. As and when we do that, we take that decision, it will be placed in public domain,” he said.

Mr. Sibal cited the example of Mines and Minerals Regulation and Development Act that governs mineral resources in the country and auction of these resources can pose challenges.

“Suppose we want to mine a particular mineral and we find that for the prospecting of that mineral because you don’t know what are the quantities of that mineral embedded in earth and you don’t know where it is embedded so naturally you will request entrepreneurs to come and prospect,” Mr. Sibal said.

After entrepreneurs spend $600 million on prospecting, and find the mineral, should it be the policy to auction it. These are the questions which need to be looked into, he said.

Telecom Minister said that the Supreme Court judgement would have impact on the future of investments in the country.

“We have to study all those things and then come to a considered view as to what extent it will impact and how we have to deal with it. So, we have not taken a position on it but these are all issues that need to be addressed,” Mr. Sibal said.

Apparently Mr. Sibal seems acting as a lawyer but not as a responsible minister. What he is upto as telecom minister proved beyond doubt on the day itself when he said there was no financial loss to the Govt on 2-G spectrum issue but it was otherwise.

from:  Anthony Rao Reddy
Posted on: Feb 21, 2012 at 01:04 IST

Perhaps Mr.Sibal is unaware of the existence of the Geological Survey of India and its activities. At least the word "survey' in the title of this government department should have give him some idea about the department's activities. By the way what is the similarity between mineral prospecting and 2G spectrum. Spectrum is not something existing in space which is sold by the government to wireless operators. When different agencies operate in the same space each of them has to restrict to a given frequency band for wireless transmission so that their individual operations do not interfere with those of others. Virtually the role of the government is in regulating the band width given to different wireless operators in a country or region. One would request Mr.sibal to do some further reading on the subject before he talks about these matters.

from:  K.Vijayakumar
Posted on: Feb 20, 2012 at 22:00 IST

yes, we will find more sectors mired in corruption- this is the hidden meaning.

from:  Hitesh
Posted on: Feb 20, 2012 at 21:21 IST

Science and Geophysical surveys have made such progress that we can be
so sure of the amounts of minerals predicted which can be mined. when
accepting and giving such huge contracts involving some thousands of
crores.. cant we spend in a decent geo-physical survey report from NMDC,
or NGRI??

Yes, Let there be some affects. atleast some more money will get into
govt treasuries instead of the mining (or whichever) mafia.

from:  Yashwanth
Posted on: Feb 20, 2012 at 20:37 IST

Hon'ble Supreme court's judgement is very much important as far as well performing democracy is concerned. It has shown the way how natural resources should be allocated and rejected the crony capitalist attitude of Government and averted the this republic of becoming Banana republic. Why does Govt require arbitary power where decision is common sense. One can understand very nature of any executive decision in which circumstance it has been taken and inference can be drawn that it is in national interest. But in 2G spectrum it is clearly seen that the decision is deliberatly taken as quid pro quo and Minister and his Party was benifitted from this. This judgement will increase the credibility of India that if Govt become arbitary, legal system can give the Justice as it is clear from Vodafone case. Thus this landmark decision show the rule of law is prevailed here. An auction is best practice where demand is high and supply is poor as in case of spectrum .

from:  Atul Warhekar
Posted on: Feb 20, 2012 at 20:17 IST

Well Said Santhanam. Basically, these cronies are trying to mis-represent the Supreme Court judgement and create a false impression of the judgement among the people. The SC Judgement is against arbitrary allocation of contracts.

Does he want us to beleive that every entrepreneur is doing business expecting some kickbacks/waiver from the Govt to fill his pockets. It is this class of un-ethical businessmen we will lose and it is good for the interest of the nation.

from:  Vijay
Posted on: Feb 20, 2012 at 18:39 IST

This is good for ethical economy. No night watchman like business will creep in to our
economic system.

from:  Manohar
Posted on: Feb 20, 2012 at 18:21 IST

I am surprised the Indian media still gives importance and coverage to statements by this Telecom Minister' who indulges in talk such as "zero loss to exchequer "etc and who has not an iota of credibility left .

from:  RALPH PAUL
Posted on: Feb 20, 2012 at 16:55 IST

In the name of Economy and GDP, Govt appears to put everything under the carpet and allow free run for Rulers to do what they want taking advantage of Judicial delays and poor and non-literate citizens.
Increasingly Politicians start believing more in exploiting communal and class differences by flouting institutions and find solace with weaker systems to fuel their mission.

from:  J Ramakrishnan
Posted on: Feb 20, 2012 at 16:40 IST

supreme court cancelled the licenses not because it has problem with FCFS. The FCFS in case of spectrum allocation was patently violative of administrative judgement. The govt must apply its discretion and not take arbitrary action. This is what SC meant.

from:  biswajit
Posted on: Feb 20, 2012 at 16:36 IST

This talk by Minister is to muddle the water, to say that they are now thinking through all the standard procedures etc...and comparing apples and Oranges...nothing else should be made out of it. SC was categorical that they were against FCFS basis that was followed for 2G allocation...

from:  Subramanian
Posted on: Feb 20, 2012 at 16:34 IST

When deciding on who should prospect, mine and exploit don't you make an assessment of the experience and capabilities of those interested who may have expressed an interest.Won't a short list of those qualified be made.Won't they be asked to competitively bid (otherwise called Auction) with conditions attached to Govt's share of the output with attendent risks entirely on the bidder etc
How does the Supreme Court Judgment stand against this standard well known procedure
Basically the judgment is against arbitrary and capricious decisions in the guise of First come first and may be wants a competition in the form of a Technical Bid and a Finacial Bid

from:  N.Santhanam
Posted on: Feb 20, 2012 at 15:55 IST

Yes 2G verdict will affect other sectors. But the high corruption
affects the entire nation

from:  srinivasan
Posted on: Feb 20, 2012 at 15:49 IST
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