‘Entire implementation process fails to withstand the test of scrutiny'
The Comptroller and Auditor General (CAG) of India report on the 2G spectrum allocation process clearly highlights how the role of two important government bodies — the Telecom Regulatory Authority of India and the Telecom Commission — responsible for the growth of the telecom sector was undermined.
‘Hapless spectator'
Referring to the TRAI as “a hapless spectator,” the CAG report pointed out that the Telecom Commission (the decision-making body in the Department of Telecommunications), which could have helped in ascertaining the true value of 2G spectrum, was not properly consulted.
“The methodology for allocation of 2G spectrum — a scarce, finite national asset — for whose allocation there was an unprecedented demand, was not deliberated upon by the full Telecom Commission,” the report said, and pointed out that such discussion with the stakeholders represented in the Telecom Commission would certainly have benefited the DoT in arriving at “a more credible and transparent procedure for allocation, as also in ascertaining the true value of 2G spectrum.”
Benefited a few
“The entire implementation process fails to withstand the test of scrutiny, and hence the widely-held belief that it has benefited a few operators and not been able to maximise generation of revenue from the allocation of such a scarce resource. This has now been confirmed,” it added.
Similarly, the report said the role of the TRAI would also appear to have been reduced to that of a “hapless spectator, as its recommendations were either ignored or applied selectively.”
The CAG pointed out that the TRAI, in August 2007, had recommended ‘no cap' on the number of licences in any service area, despite which the DoT issued a press release on September 24, 2007 stating that applications for the issue of licences would be accepted only up to October 1, 2007.
Artificial cap
“This action, in effect, conveyed the fixation of an artificial cap in the number of licences to be awarded...It seems that the ministry, by issuing the press release in advance in September 2007, had, in effect, circumvented the TRAI's recommendation by taking an action counter to it and its acceptance by the DoT in October 2007,” the CAG said.
Keywords: 2G spectrum scam, A. Raja, CAG report, Parliament debate, TRAI
DOT is composed of a Cabinet Minister and a Minister of State, Secretary of the Department who is also chairman of the Telecom commission. The said Commission which includes permanent members belonging officially to DOT and some parttime members from the Planning Commission and other ministries( see DOT's website). Hence CAG's remark that Telecom Commission (the decision-making body in the Department of Telecommunications), could have helped in ascertaining the true value of 2G spectrum does not make sense. Since the said commission is the main constituent of DOT presided over by the Secretary of DOT, it has to be presumed that the Commission is party to the decisions of DOT.
What will happen to the loses government had. Will they try to get the 1.76 lakh crore from companies like Reliance, Swan, etc ? or is it gone and this is a drama well planned and executed by Congress and DMK.
Thankfully we have someone within the system that identified. However, the question is: will this case be brought to a logical conclusion or will it die its natural death with time and inaction. I would also like to ask a question to Opposition: what were you doing when the spectrum was given? It is hard to believe that the opposition did not have the information that something was wrong at that time.
The credibility and integrity of the PM is at stake. In first place I would like to ask the PM who scripted this speech in which he said "CAG report should be fair" . He should not pressure independent institutions like CAG, in fact CAG should be empowered and strengthened further to make some recommendations and take actions rather than only raising red flags.People should come in full support to demand a JPC....PM and Congress doesn't want a JPC because the results of the JPC might come just before the elections and Congress will not even be able to form a coallition Government... The Congress doesnt want another BOFORS by going for a JPC in 2G spectrum or CWG scam...And also the UPA and congress fear that the JPC might recommend that the scam money be recovered from the Government..PM and Congress is really trying to fool the people. People please come together to demand a JPC for 2G Spectrum, CWG and also for the Karnataka Mining scam..
It is not clear whether this is really a scam or the result of poor planning/policy making. Any process takes time to evolve and reach optimal levels. This applies to the spectrum allocation/licensing process also. So, calculating presumptive loss based on a future event may not be correct. If this yardstick is used, what will be the presumptive loss for the spectrum allocations done before 2007? Secondly, ignoring the advice of PM and other ministries by itself may not point to a scam as long as the allocation was done according to the policies existing at that time. Thirdly, in any country, any form of licensing will favour a few major players. This may be due to the influence they have with the government, because of their proven track record or due to corruption. The real reason behind the favouritism should be ascertained in this case.
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