Spectrum base price set at Rs. 14,000-cr.

In a bid to conduct auction for fresh license of 2G spectrum, government of India has fixed the base price of the spectrum at Rs.14,000 to Rs,15,000-crore band. The Supreme Court last year had cancelled the 122 licences citing it illegal and ordered the government and telecome regulator to complete the auction process till August 31, 2012.

Following the court's directive, government has formed an Empowered Group of Ministers (EGoM) to prepare the documents and to present before the cabinet. After the approval of cabinet, the auction process.

The EGoM had suggested a reserve price at Rs 14,000-15,000 crore for 5 Mhz of airwaves as against around Rs 18,000 crore recommended by sectoral regulator TRAI for the auction of spectrum vacated from cancellation of 122 licences by Supreme Court.

The Cabinet has also reportedly approved levying of annual spectrum usage charge of 3 to 8 per cent on different slabs of revenue as recommended by the P. Chidambaram- led EGoM.

Chidambaram has been made the Finance Minister in a minor Cabinet reshuffle early this week.

The apex court had in February this year cancelled 122 licences issued by the then Telecom Minister A Raja in 2008 and asked the government to conduct fresh auctions by 31st August.

--With IANS Inputs--