The Ministry of Finance has asked the Department of Telecommunications (DoT) to identify spectrum that can be sold to ensure there is no shortfall in non-tax revenue.
The finance ministry expects to raise nearly Rs 300 billion from the telecom sector, according to the general budget for 2011-12, tabled in February 2011.
In a letter to DoT, Sushma Nath, finance secretary, said ?The non-tax receipt from the auction of telecom spectrum is an important and substantial component of the overall non-tax receipts projected in Budget 2011-12. I would request you to take all steps necessary to ensure there is no shortfall against the projected receipts from the auction of telecom spectrum. I would also request you to explore and identify expeditiously surplus telecom spectrum which can be put to auction in 2011-12.?
In 2010, the Government obtained over Rs 1 trillion from selling 3G and broadband spectrum, which helped in bridging the fiscal deficit. However, identifying spectrum to be sold is an issue.
Currently, there is only one slot of 20 Mhz of broadband spectrum in 2.3 Ghz band available in about 19 circles. According to DoT estimates, the Defence forces have 230 Mhz of spectrum which can be used for mobile services, which may help generate additional revenue of Rs 900 billion for the exchequer.
