Incumbent operators can retain 2.5-MHz spectrum in 900-MHz band, rest to be refarmed decision final.
The group also said that the companies will have to pay a market price if they merge or acquire another company, which was allocated spectrum at old price of Rs 1,658 crore.
The EGoM decided to auction a minimum of eight blocks in all service areas after reserving spectrum for refarming against the allocation of 900 MHz for incumbent operators whose licences will expire during 2014-2016.
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 seven-member grouping has seen two changes -- S Jaipal Reddy replacing Murli Deora after taking over as the Oil Ministry, while Kamal Nath has given away to the new Road Transport and Highways Minister C P Joshi.
Home Minister P Chidambaram was on Friday appointed the head of the Empowered Group of Ministers on spectrum auction that was reconstituted after Agriculture Minister Sharad Pawar declined the job.
As of now, monsoon rains are deficient by 21 per cent across India, affecting sowing of kharif crops. Karnataka, Maharashtra, Gujarat, Haryana, Punjab and West Rajasthan have been the worst-hit regions this year.
Government will offload 9.5 per cent of its ownership.
The second round of spectrum auction will begin in March after the Cabinet decides on reducing reserve price of 800 MHz band, used for offering CDMA-based mobile services.
In his letter dated October 11, written before the last EGoM meeting, Ambani has said the government would incur a loss of at least Rs 35,000 crore if the EGoM had decided to charge for excess spectrum beyond 6.2 MHz only prospectively from 2012, and not from 2008.
Govt to bear Rs 12k-cr cost of spectrum retention but without any cash outgo put up for Cabinet nod.
Still battling the fallout of last month's steep Rs 7.54 a litre hike in petrol price, the government on Friday said it is not considering raising rates of diesel, domestic gas (LPG) and kerosene for the moment.
The Cabinet on Friday fixed a minimum or base price of Rs 14,000 crore for the Supreme Court mandated auction of telecom spectrum.
The EGoM was originally scheduled to meet on Wednesday but has been deferred because of non-availability of certain ministers in the grouping.
State-owned oil firms have seen their losses on diesel sales widen to over Rs 6 per litre, even as a ministerial panel meeting on raising prices has not yet been scheduled.
The government is likely to set up a Group of Ministers (GOM) to take a final decision on divesting stake in the telecommunications company, Bharat Sanchar Nigam Ltd.
The deregulation of fuel prices will mean a valuation re-rating for most stocks in the sector, Amar Ambani, vice-president, research, at IIFL, speaks to the Business Standard.
An Empowered Group of Ministers (EGoM) may go with Oil Minister Murli Deora's proposal to free petrol prices from government control, which would trigger a hike of Rs 3.73 a litre, official sources said.
'The AMs are a different beast and reflect the political play within the government.' 'Prime Minister Modi does not need to assuage any interest group to take the final call on any decision that belongs rightfully to the Cabinet,' points out Subhomoy Bhattacharjee.
With huge stocks and a possible record output this year, the Centre will soon take a decision whether to allow export of wheat, which was banned in early 2007, Food And Agriculture Minister Sharad Pawar said here on Thursday
The Empowered Group of Ministers on Ratnagiri Gas and Power Pvt Ltd on Wednesday decided to pool the price of gas for Dabhol
Instead of the original plan of auctioning four 3G licences per circle, bundled with 5 MHzs of spectrum per licence, the schedule will depend on spectrum availability in each circle.
Power plants, involving investments of Rs 100,000 crore, facing closure.
In its manifesto for the 2014 Lok Sabha elections, the Bharatiya Janata Party (BJP) had criticised the Congress-led UPA regime for "policy and decision paralysis".
Top sources in the government told Business Standard the Congress managers wanted the rise in prices to be a collective decision of the United Progressive Alliance and also make sure allies could not wriggle out of the exercise to take harsh economic decisions.
The eGoM, headed by External Affairs Minister Pranab Mukherjee, is likely to take up issues including demand from developers to revise the 5,000 hectare land ceiling for one SEZ.
Though no decision was taken by the EGOM as it was the first meeting of the EGOM, environmental groups and those in possession of the land have raised their ante against such a plan.
The government has decided to scrap a plan to purchase wheat through a series of small domestic tenders in different parts of the country, fearing that private traders may corner most orders.
The Cabinet Committee on Economic Affairs has approved the purchase of 68 aircraft by the country's flagship carrier Air India, Civil Aviation Minister Praful Patel said on Thursday.
Fresh notifications and approvals for setting up Special Economic Zones are being put on hold till an Empowered Group of Ministers looking into the matter takes a final view, Rajya Sabha was informed on Wednesday.
The freeze on special economic zones may go in the next 10 days, with the empowered group of ministers expected to give its nod to proposals that show land has already been tied up.
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).
Niira Radia had said friends in high places enabled favourable EGoM decision on Sasan coal diversion, a charge staunchly denied by Reliance Power.
Says tradability will ensure greater economic efficiency & higher revenues for the government.
An Empowered Group of Ministers on drought headed by Agriculture Minister Sharad Pawar on Wednesday approved Rs 1,207-crore relief package to Maharashtra. "Rs 1,207 crore drought relief package has been approved for Maharashtra," Home Minister Sushilkumar Shinde, who is also a member of the EGoM, told PTI after the meeting of the minister.
It expects Rs 39,895 crore from it.
Price of diesel, LPG and kerosene will have to go up.
Telecom Commission says refarm all spectrum in 900-MHz band to 1,800-MHz band operators.
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