Friday, November 16, 2012

2G Auction - Bloated loss or miscalculation

Just the other day, 2G auction was completed and there were not many takers. It generated just over Rs 9000 crores and gave the government an opportunity to shout back on the losses estimated by CAG to the tune of 1.76 lakh crores.

It is not surprising to find that while there are different views by different political parties on this re-auction and the revenue generated. While congress refuted CAG allegations, opposition parties attributed the less revenue to disinterest by the telecom companies. But I was amused that there was no response by telecom companies on it or any view from an expert.

When the world is moving towards 4G and even in India people are shiftting to 3G, it should not raise any eyebrow when noone sees any market for 2G in next 2-3 years. It is like saying that there are no takers for Maruti 800 even though it was being sold at a heavy premium around 15 years back.

I think telecom companies has done well to remain quiet on such sensitive topic, otherwise it would have consumed another session of parliament. It ensured that we have a full fledged session dedicated to Coalgate. Otherwise opposition would have been divided self and confused on what to fight with Government. 

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