Since most of the incumbent operators will have to renew their licences in the next 3-5 years, they might have to shell out Rs10,972.45 crore for acquiring start-up 2G spectrum as against to Rs1,658 crore paid earlier
New Delhi: Mobile tariffs could go up in the near future as the Telecom Regulatory Authority of India (TRAI) Thursday stood by its recommendation of over six-fold jump in second generation (2G) spectrum price, reports PTI.
Since most of the incumbent operators will have to renew their licences in the next 3-5 years, they might have to shell out Rs10,972.45 crore for acquiring start-up 2G spectrum as against to Rs1,658 crore paid earlier.
TRAI has sent back its recommendations to the Department of Telecom (DoT) which had sought clarifications from the regulator before finalising the National Telecom Policy 2011.
With regard to the one-time charge for additional spectrum beyond the contracted limit of 6.2 MhZ, TRAI has left it to the government to take an appropriate decision.
In its response to DoT, TRAI said “...should the government decide to charge the spectrum beyond the initial spectrum (6.2 MHz) by way of amending the licence conditions, the current price would be what has been estimated by the experts” which is Rs10,972.45 crore for pan-India licence.
In its recommendations earlier this year, TRAI had said that each MhZ of additional spectrum, after the 6.2 MHz limit, held by operators should cost one-time Rs 4,571.87 crore (all-India).
However, it would vary from circle to circle and the operators would have to pay only for those where they hold extra spectrum.
According to TRAI recommendations, all licencees would have to pay for spectrum at the current price at the time of renewal of licences, or else at price to be discovered through auction or any other market-driven mechanism.
TRAI said the price of spectrum in the 800 MhZ band and 900 MhZ band (both are considered to be of superior quality) would be 1.5 times of the price of 1800 MhZ band spectrum.
The regulator, however, recommended some relief by way of suggesting a uniform licence fee of 6% —to be achieved over the next four years—of the adjusted gross revenue (AGR.)
Those with above 35% but less than 60% would be referred to TRAI for its recommendation. The regulator would carry out a detailed examination to ensure that there is no abuse of market dominance.
If an entity ends up having over 60 % market share, TRAI will not consider the particular merger or acquisition.
“The limit for spectrum holding would be 25% of the spectrum assigned in a service area,” TRAI added.
On spectrum sharing, TRAI said, “Spectrum sharing would be permitted between any two licensees holding spectrum subject to the condition that the total spectrum would not cross the permissible limit under mergers.”
The permission would be for a period of five years, subject to renewal for one more term of five years, it added.
On the issue of identifying additional spectrum, TRAI said it is separately initiating an exercise to review the usage of spectrum available with the government agencies.
The regulator would also separately initiate a consultation process to explore the feasibility of liberalisation of spectrum.
It is also looking at limiting the auction of 700 MHz band auction initially to those not having spectrum in the 800/900 MHz band, subject to the condition that holders of the 800 and 900 MHz band would pay the market price.
On exit policy, TRAI said it would initiate a consultation process and forward its recommendations to the government in due course.
The Index futures registered Rs625.43 crore turnover with 23,940 contracts. Among others Index Option (call) registered a turnover of Rs68.44 crore, Index Option (Put) Rs12.73 crore and equity future Rs 53.03 crore, BSE said, adding 128 broker-members participated in the trading
Mumbai: The country’s premier bourse Bombay Stock Exchange’s (BSE) derivatives trading volume crossed Rs750-crore mark on Thursday, reports PTI.
The volume of derivatives trading touched Rs759.64 crore with trading in 30 underlying shares, the exchange said in a statement.
The Index futures registered Rs625.43 crore turnover with 23,940 contracts. Among others Index Option (call) registered a turnover of Rs68.44 crore, Index Option (Put) Rs12.73 crore and equity future Rs 53.03 crore, BSE said, adding 128 broker-members participated in the trading.
The exchange launched market-making scheme, known as the liquidity enhancement incentive programmes or LEIPs in September with the expectation that it would improve liquidity and benefit the retail stock market investors.
The scheme aims to generate more investor interest in derivatives, based on its benchmark Sensex and the underlying 30 stocks. The BSE has earmarked a total of Rs107 crore for the scheme that will be in force for seven months in two phases.
This is the second hike in petrol prices in less than two months and it came on a day when the food inflation rose ‘dangerously’ to 12.21% for the week ended 22nd October
New Delhi: State-owned oil companies on Thursday effected yet another steep hike in petrol price, by Rs1.80 per litre with effect from Friday, the 5th increase this year, coming on top of falling rupee and rising cost of imported crude, reports PTI.
Petrol price in Delhi will cost Rs68.64 per litre, up from Rs66.64 a litre. The retail selling price in different cities will vary according to the local sales tax.
“Crude oil has been more or less steady but rupee depreciation is a cause of concern. We have been forced to increase prices because of rupee depreciation,” Bharat Petroleum Corporation (BPCL) chairman and managing director RK Singh told PTI. The base price has been increased by Rs1.50 per litre.
“The rupee has depreciated from Rs46.25 a dollar to Rs49.40, increasing our cost of imports,” Indian Oil Corporation (IOC) director (finance) PK Goyal said.
Sources said oil minister Jaipal Reddy consulted finance minister Pranab Mukherjee before oil companies were given a green signal to raise prices.
The heads of three oil companies —IOC, BPCL and Hindustan Petroleum Corporation (HPCL)—met here Thursday evening to decide on the price hike after they got a firm green signal from the oil ministry, they added.
This is the second hike in petrol prices in less than two months and it came on a day when the food inflation rose ‘dangerously’ to 12.21% for the week ended 22nd October.
Oil marketing companies had earlier hiked petrol prices by Rs3.14 a litre on 16th September when the rupee was ruling at about 48 to a dollar.
The government had in June last year deregulated or freed petrol from all price controls but the retail rates have not moved in line with cost as high inflation rate forced the oil companies to seek ‘advice’ from parent oil ministry before revising rates.
This is the sixth price increase since petrol price was deregulated, after excluding minor changes resulting from duty changes and increase in dealers’ commission.
On Wednesday Mr Reddy had met Mr Mukherjee to appraise him of the precarious financial health of oil companies. Earlier in the day today, the oil ministry sent a detailed note to the Cabinet secretariat seeking urgent action on deteriorating financial health of oil PSUs.
The oil ministry in its note pointed that Indian Oil, Bharat Petroleum and Hindustan Petroleum together will lose about Rs1,30,000 crore in revenue this fiscal on selling diesel, domestic LPG and kerosene at government-controlled rates.
Sources said the three companies are losing Rs333 crore per day on selling fuel below cost.
State-owned oil firms are currently losing Rs9.27 per litre on diesel, Rs 26.94 per litre on kerosene sold through the public distribution system (PDS) and Rs260.50 per 14.2-kg LPG cylinder supplied to households for cooking purposes.
While the loss on these three products are compensated through a combination of government cash subsidy and upstream oil firm dole-outs, no such mechanism exists for making good the losses on petrol as the product is deregulated.
The three firms are virtually living on borrowed money as they had to raise funds to meet even working capital requirement in the absence of fuel selling price not meeting even operating expenses.
The oil ministry had also requested for an early meeting of the high-powered ministerial panel to decide on ways to deal with the crisis.
The Empowered Group of Ministers (EGoM) meeting is being sought before the winter session of Parliament that begins on 22nd November.
The ministerial panel is essentially a consensus building body of the Congress-led UPA government and comprises of key allies like DMK, TMC and NC. The allies had in September scuttled plans to limit supply of subsidised LPG cylinders to 4-6 per household a year with a view to reduce subsidies.