The government has lowered the expectations from the third generation (3G) spectrum auction to Rs 20,000 crore from Rs 40,000 expected earlier. The reason is the ongoing economic slowdown, which may not allow companies to bid as aggressively as was supposed earlier.
Economic affairs secretary Ashok Chawla said on Monday during the post budget briefing that the government was earlier expecting Rs 30,000 crore from the 3G spectrum auction, but has only factored in Rs 20,000 crore in the budget for FY10. He added that the figure could be higher or lower depending on the market price brought out at the auction process in next fiscal.
The ministry of telecom had earlier given an estimate of Rs 40,000 crore as revenue from the auction. The development also cleared that there was no window for the auction in current fiscal at least and in all probability, the auction will happen only once the new government takes charge at centre.