The Department of Telecom Communications (DoT) is looking to seek an extension for holding spectrum auction from the Supreme Court, says news reports.
As per the Supreme Court order DoT has to auction spectrum by August 31, 2012. DoT is considering asking for an extension in the deadline on the ground that the panel of ministers who are overseeing the spectrum auction will have to be reconstituted under a new chairman which will take time. This has been necessitated with the resignation of Minister of Finance, Pranab Mukherjee heading the Empowered Group of Ministers (EGoM).
Mukherjee, who was to finalise the modalities of spectrum auction will be resigning to contest for the presidential polls.
Last week, EGoM headed by Mukherjee as its chairman had deferred its meeting to decide on the spectrum reserve price for the upcoming spectrum auction. In addition to deciding the reserve price EGoM was also to take a decision on other key issues including spectrum usage charge, rollout obligation, staggered payment by mobile operators for spectrum won through auctions and whether mobile operators could mortgage spectrum to secure funding from banks.
According to DoT reconstituting the EGoM under a new chairman will take a while, which will leave very little time to conduct the pre-bid conference, issue clarifications, invite applications for the sale process, check compliance and carry out the bidding process. DoT is hoping that new EGoM is reconstituted latest by July 5, so that the norms governing spectrum auction can be finalised at the earliest to roll out spectrum auction before August 31, 2012.
