3 G & BWA Auctions - Things could have been done in a better way

Dr.Murli Manohar Joshi
Chairman
Public Accounts Committee
Government of India
6 , Raisena road , New Delhi 110001

Dear Dr.Joshi,

I am sure this finds you fine .It was really nice talking to you yesterday. I wish to submit the following for your kind consideration

Recently , the government has raised Rs. 1.06 Lac Crore from the 3 G & BWA auctions. Though it is a different issue that the government was expecting a modest Rs. 32000.00 Crore from the auction ! The following should be considered

1. What was the basis of the government’s projections ? Was it a failure on the part of the government that the proceeds of the auctions exceeded by 3 times of the projections from the government ? This clearly gives a reason to believe that there was a systemic failure on the part of the government and it shows up in government’s failure to arrest price rise ( inflation )
2. Was the spectrum auction and sale the best option ?
3. If the government went for a zero price or nominal booking price, and allotted spectrum for the entire India as one circle with say a 25 % - 30 % of the recurring revenue share from the telecom providers, would it not be better in serving the interest of the government in the long term ? It would have eventually generated much higher return per year and every year rather than one a time high auction fee ! What was the basis of deciding one time auction fee with an expected collection of Rs.32000 crore ? This money ( Rs.1.06 lac crore ) might give temporary sound bites to Pranab Da ( and the PM ) for no efforts of his or Mr. Raja . But the fact is that , it will put a strain on the telecom companies and will also suck the liquidity from the markets . This will also cause a long term loss to the government as it could have gained immensely , had it gone for a lower or zero initial fee and a larger share in the recurrent revenue from the telecom providers. This is a myopic policy of this government and a big loss to the exchequer
4. What was the total loss in previous auctions done in arbitrary allocation of telecom spectrum, and what is the progress in the CBI investigation ? Why has the FIR lodged by the CBI not named anyone ? When the senior most minister or the bureaucrat should be named in the FIR , what has prompted the CBI to lodge the FIR against unnamed persons ?
5. Since Rs.10.6 Lac Crore is already raised through the auctions, i suggest that the government allocates the 10 % the money raised in India Innovation and Entrepreneurship fund to promote innovation and entrepreneurship amongst youth of the nation

I am sure you will take up these matters in appropriate forums . We look at your leadership in addressing some important issues concerning the nation .

With best regards

Rajendra


Rajendra Pratap Gupta
Email: office@rajendragupta.in

India & China : New Super power and the next crisis state

India and China are headed for a new challenge . India has all the ingredients to qualify as the next super power . Unlike the US , Which has arrogated for itself the ‘Big brother’ status , and almost failed as a ‘Responsible super power’. China might have a big 'trade surplus' but has a huge ‘Credibility deficit’. With no other credible alternative , it is for sure,that India can work towards being the next ‘Responsible Super power’ by 2025

China is on the way to be become the victim of the ‘economic crisis’ that has already hit the USA & Europe, and for sure ,now its China’s turn !!

Wait and watch

Rajendra Pratap Gupta
Email : office@rajendragupta.in