Union Cabinet clears 2G Spectrum Auction

The Union Cabinet, chaired by the Prime Minister Narendra Modi, has approved the proposal of the Department of Telecom to proceed with auction of 380.75 MHz of second generation (2G) spectrum.

The government will sell 380.75 MHz of 2G Spectrum in three bands – 800,900 and 1800 MHz. The 2G spectrum auction would fetch Rs 64,840 crore (excluding 2100 MHz spectrum). The government is likely to get Rs 16,000 crore in the current fiscal year from the auction to be held in February 2015. In the last year’s 2G spectrum auction, the government had garnered around Rs 62, 162 crore.

The Reserve price approved is Rs 3646 Cr pan-India per MHZ in 800 MHz, Rs. 3980 Cr.  for 900 MHz band pan India excluding Delhi,  Mumbai, Kolkatta,  and J&K;  Rs 2191 cr pan India (excluding Maharashtra and West Bengal) in 1800 MHz band.

The quantum of spectrum to be put to auction is 103.75 MHz in 800 MHz band in all service areas, 177.8 MHz in 17 LSAs in 900 MHz band and 99.2 MHz in 15 LSAs in 1800 MHz band. Cabinet also decided that intent to put 2100 MHz to simultaneous auction may be announced along with auction of other bands. Details of this will be announced later on.