The Telecom Regulatory Authority of India (TRAI) has told the Central Bureau of Investigation (CBI) that spectrum allocation under former Minister of Telecommunications and IT, A. Raja, had generated profits of between Rs 30 billion and Rs 70 billion for the government.
While allotting spectrum to 122 applicants in 22 circles in 2008, the government had garnered Rs 123.86 billion. According to TRAI, the estimated price of the spectrum was between Rs 55 billion and Rs 95 billion.
Prior to this, the Comptroller and Auditor General of India (CAG) had estimated a loss of Rs 1.75 trillion to the exchequer due to irregular spectrum allocation in 2008. Thereafter, Minister of Telecommunications and IT, Kapil Sibal claimed zero loss and the CBI pegged the loss at Rs 309.84 billion in its first charge sheet filed on April 2, 2011.
Meanwhile, the CBI had asked TRAI to seek expert evaluation of the loss, taking into account all parameters, including market dynamics and business models. Thereafter, TRAI had set up an expert committee to determine the possible price of spectrum, year-wise from 2001 to 2008.
On August 19, TRAI told the CBI, ?The estimates of the spectrum are in a broad range, the adaptive model providing a lower estimate and the production function, an upper estimate. For the terminal year, the range of estimates of the value is between Rs 55 billion and Rs 95 billion, and the range narrows for earlier periods.”
However, TRAI added that because it is attempting to estimate a value placed by bidders, had the spectrum been auctioned, it was not unreasonable to expect variation between different approaches. Also, given the meager data available, it was not possible to estimate the standard of errors.
