DoT rejects FM’s charges

BY PAWAN BALI

New Delhi

Aug. 14: The telecom ministry has rejected finance ministry’s objection on 3G guidelines saying that it has always consulted the finance ministry at appropriate times while finalising the guidelines.

The finance ministry on Wednesday had asked the telecom ministry not to finalise 3G guidelines as it has not been consulted on clauses with financial implications. "The telecom department is of the view that it has consulted the finance ministry at all level including at the minister’s level before announcing 3G policy," said an official from telecom department.

"The policy issues is considered and finalised by telecom department in consultation with member of finance, who is considered a representative of the finance ministry," he said.

"Infact, telecom ministry deviated from the Trai recommendations and included non-licenses with prior 3G experience to participate in the auction on finance ministry’s recommendations. So, required consultation with finance ministry has already taken place," the official said. "On all important points the ministry of finance was on board," he added.

However, the official said that the telecom department is ready to consult the finance ministry in the future on 3G guidelines, if required.

The finance secretary, Mr D. Subbarao, in a letter to the telecom secretary, Mr Siddharth Behura had said, "The guidelines contain clauses with financial implications such as determination of the spectrum acquisition price and reserve price for auction, fixation of spectrum usage charges and penalties for hoarding of spectrum. However, the finance ministry has not been consulted in the matter."

Mr Subbarao had further said that the transaction of the business rule prescribes mandatory consultation with finance ministry as a pre-condition in respect of all issues which have financial implications.