As per the current market price, the government is expected to fetch Rs 5,300 crore (Rs 53 billion) by selling 10 per cent equity or 24.27 crore (242.7 million) shares at discounted price to Oil and Natural Gas Corporation and Oil India Ltd.
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TC at its meeting here recommended to an Empowered Group of Ministers that reserve price for pan-India 1800 MHz spectrum be fixed 15 per cent higher than Trai suggested rates.
The government has set a total revenue target of Rs 40,874.5 crore (Rs 408.74 billion) this fiscal from spectrum, including auction amount, one-time spectrum charge and annual regular licence fee.
State-owned ONGC and Oil India Ltd (OIL) are likely to buy a 10 per cent stake in Indian Oil Corp (IOC) from the government at Rs 220 per share, aggregating about Rs 5,300 crore (Rs 53 billion).
The government on Friday cleared disinvestment in two bluechip state-owned companies IOC and Bhel, which would fetch over Rs 7,300 crore (Rs 73 billion) to the exchequer in the current fiscal.
Government's resolution on the contentious issue of spectrum usage fee seems to have found favour with telecom operators with none of them withdrawing their application from airways auction on the last day on Monday.
'If the government starts playing favourites, if the government acts in a manner which is not transparent, then natural resources which belong to not just you and me, but future generations, they fritter away. The anger against corruption, the anger against India's natural resources being looted is a consequence of the fact that within society there is a huge amount of turmoil and discontentment. Why should an Empowered Group Of Ministers or the Cabinet Committee on Economic Affairs decide the administered price of gas?' asks Paranjoy Guha Thakurta in this exclusive interview with Rediff.com's Sheela Bhatt.
Telecom Regulatory Authority of India has recommended up 62 per cent reduction in base price of premium 2G spectrum and up to 37 per cent in case of radiowaves freed from the cancellation of 122 licences, compared to the amount fixed for previous auction.
According to a study, the change in frequency for transmitting mobile signals could cost the telcos over Rs 1 lakh crore (Rs 1 trillion) cumulatively.
Even as India gears up for election results on May 16, a group of senior Bharatiya Janata Party leaders have taken up an informal initiative to see how a 'Modi ministry' will look like, in case the party forms the government at the Centre.
Regulator has suggested a lower reserve price even in service areas where spectrum was sold in November 2012.
The only way out for DMRC would be if the lenders, a consortium of 10 banks, find another concessionaire for the project
An empowered group of ministers headed by Defence Minister A K Antony is to consider an Oil Ministry proposal of abolishing the priority ranking according to which natural gas is first given to urea manufacturing fertiliser plants, then to LPG units, followed by power plants, city gas, steel and refineries.
The Oil Ministry has proposed raising natural gas prices by at least 60 per cent, a move that will result in rise in urea as well as power costs.
With the Petroleum Ministry opposing disinvestment of IOC in the market, government is exploring the option of selling its shares to other oil PSUs like ONGC and OIL.
The uniform SUC, if implemented as per recommendations made by Telecom Regulatory Authority of India, will provide relief for mobile operators such as Airtel, Vodafone and Idea, but will increase rates for broadband wireless access spectrum holders like RJIL.
He allegedly advanced the cut-off date to favour accused firms in allocation of 2G licences.
Former Telecom Minister A Raja on Tuesday told a Delhi court that former Prime Minister Manmohan Singh and Cabinet members were "completely under confusion" created by "vested interests" about policy and procedure of Department of Telecommunication in allocating the 2G spectrum.
Sources say companies will have to keep the market share of merged entities below 50% in all circles
Inter-ministerial programmes have run into obstacles as rules written by bureaucrats hamper rather than promote investments.
Its says reconsider lower reserve price, uniform usage charges; GSM players to bear the brunt.
The government has suffered a loss of Rs 12,488.93 crore (Rs 124.88 billion) due to under-invoicing of gross revenue by six telecom companies including Reliance Communications, Vodafone and Bharti Airtel, the CAG said in a damning report on Friday.
From Swachh Bharat to spearheading the Make in India campaign, the PMO seems to be at the centre of all policies, writes Nivedita Mookerji.
Imported components account for up to 30% of the firm's total production cost.
If the EC decides to put on hold a gas price revision for RIL, it would set a precedent for pricing decisions of the government and policy decisions taken but undergoing procedural delays.
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With Oil Ministry continuing to be opposed to selling IOC shares on stock market like other disinvestments, an Empowered Group of Ministers headed by Finance Minister P Chidambaram today decided to sell 24.27 crore shares or 10 per cent government stake in the company to Oil and Natural Gas Corporation and Oil India Ltd.
When criticism mounted about projects coming to a standstill last year, the Manmohan Singh government sacked one of its Cabinet ministers. The buzz was that the minister had been sitting on clearances and refusing to approve the projects.
The Opposition said that the government was 'bull-dozing'.
Dhirendra Mulkalwar, one of the protestors who raised a protest banner at Essar's Mumbai headquarters, on why he joined Greenpeace's Junglistan group that is working to save India's forests.
The euphoria of Ab Ki Baar Modi Sarkar will fade quickly if the Modi government does not raise its game, and focus significant monetary resources and managerial skills on making India's infrastructure truly world-class, says Ram Kelkar.
'When he first came to office, my belief is that the PM's reading of the landscape was that, with a vanquished Congress and fragmented Opposition, he was looking at least at two terms in office. This reading perhaps allows for a more cautious, gradual approach.' 'It was only a matter of time before the government was forced to come face-to-face with a serious corruption scandal. This is not a commentary on the BJP, but a statement about India's political economy.' 'There is growing concern about the government's commitment to freedom of expression, religious tolerance, and an independent civil society. Thus far, the positive movement on strategic and economic matters has crowded out these concerns, but they are lingering beneath the surface.'
After a two year run-in with controversies, telecom sector now looks stable and seems back on its feet with initial investment proposal of over Rs 11,000 crore (Rs 110 billion) received in 2013.
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