The probe relates to a sharp plunge of 20-26% in the shares of Parsvnath Developers, Pipavav Defence and Offshore Engineering, Tulip Telecom and Glodyne Technoserve on 26th July at the BSE and NSE
The reserve price fixed has come as a disappointment for the telecom industry which had been pitching for a 80% cut in the reserve price suggested by TRAI, which they felt would lead to up to 100% hike in mobile telephone charges
New Delhi: The Cabinet on Friday fixed a minimum or base price of Rs14,000 crore for the Supreme Court mandated auction of telecom spectrum, reports PTI.
The Cabinet, headed by Prime Minister Manmohan Singh, decided to fix the reserve price at the lower end of the Rs14,000 crore to Rs15,000 crore band that was recommended by an Empowered Group of Minister (EGoM), official sources said.
The EGoM had suggested a reserve price at Rs14,000-Rs15,000 crore for 5 Mhz of airwaves as against around Rs 18,000 crore recommended by sectoral regulator Telecom Regulatory Authority of India (TRAI) for the auction of spectrum vacated from cancellation of 122 licences by Supreme Court.
Sources said the Cabinet approved levy of annual spectrum usage charge of 3% to 8% on different slabs of revenue as was recommended by the EGoM headed by P Chidambaram.
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. But this deadline may not be met and the government may approach the apex court for extension of the timeline.
The reserve price fixed would be a disappointment for the telecom industry which had been pitching for a 80% cut in the reserve price suggested by TRAI which they felt would lead to up to 100% hike in mobile telephone charges.
The auction is crucial for companies like Uninor and Sistema Shyam Teleservices, who have time till 7th September to offer their services after which they will be forced to close down their operations in case they fail to get a licence
Earlier, the EGoM, headed by P Chidambaram, has suggested a 20% lower base or reserve price at Rs14,000-Rs15,000 crore for 5 Mhz of airwaves as against around Rs18,000 crore recommended by sectoral regulator TRAI for the auction of spectrum vacated after the Supreme Court order.
The telecom industry has been pitching for a 80% cut in the reserve price as they feel TRAI recommended rates would lead to up to 100% hike in mobile telephone charges.
Deputy Chairman of the Planning Commission said the if we do not increase diesel prices, there would be other consequences like the grid collapse