Cabinet fixes reserve price of spectrum to Rs.14, 000 crore

New Delhi, Aug 3 (ANI): Acting on the recommendations of the Empowered Group of Ministers (EGoM), the Cabinet, headed by Prime Minister Dr. Manmohan Singh on Friday fixed the reserve price of the spectrum at the lower end of the Rs 14,000 crore to Rs 15,000 crore band.

The EGoM had suggested a reserve price at Rs 14,000-15,000 crore for 5 Mhz of airwaves as against around Rs 18,000 crore recommended by sectoral regulator TRAI for the auction of spectrum vacated from cancellation of 122 licences by Supreme Court.

The Cabinet has also reportedly approved levying of annual spectrum usage charge of 3 to 8 per cent on different slabs of revenue as recommended by the P. Chidambaram- led EGoM.

Chidambaram has been made the Finance Minister in a minor Cabinet reshuffle early this week.

The apex court had in February this year cancelled 122 licences issued by the then Telecom Minister A Raja in 2008 and asked the government to conduct fresh auctions by 31st August. (ANI)