Business Today
Loading...

Govt attacks CAG on 2G scam loss figure, calls it a 'myth'

Blaming CAG for "sensationalising" the 2G scam loss figure and subsequently killing the "hen that laid golden eggs", Telecom Minister Kapil Sibal said that policies should be left best to the government.

Mail Today Bureau | November 17, 2012 | Updated 10:04 IST

The government launched a blistering attack, as expected, on the Comptroller and Auditor General (CAG) on Friday following the poor response to the 2G spectrum auction, saying that the auditor's scam loss figure of Rs 1.76 lakh crore has proved to be a "myth".

Blaming the country's top auditor for "sensationalising" the 2G scam loss figure and subsequently killing the "hen (the telecom sector) that laid golden eggs", Telecom Minister Kapil Sibal said that policies should be left best to the government.

He was addressing a joint press conference with Finance Minister P. Chidambaram and Information & Broadcasting minister Manish Tewari.

"Where are those Rs 1.76 lakh crore? You cannot extrapolate figures and sensationalise them. Sensationalism took over and the government was limited in its policy prescriptions, which has resulted in what we saw a few days ago," Sibal said.

"Government getting revenue cannot be the sole criteria. What happened in the 3G auction? The government got money but consumers have not benefited at all. Operators have not rolled out services because the nature and the kind of investment that ought to have gone into the sector has stopped and the sector is in debt," Sibal added.

The 3G auction, held in 2010, got Rs 67,700 crore as revenue.

Chidambaram said, "...In the popular imagination this was not the 2G scam rather the scam involved in Rs 1.76 lakh crore. That scam, it is now clear, was pure myth. That's the point he (Sibal) is trying to say."

As against the CAG's estimation of Rs 34,000-crore revenue, the Centre got bids worth Rs 9,407 crore.

The high base price of Rs 13,850 crore for 5 MHz of pan-India airwaves is being seen as the main reason for the auction failure.

CONG UNRELENTING

  • All institutions should work within their jurisdiction. We have respect for all institutions, including Constitutional authorities
  • The poor response to 2G auction shows the policy adopted by the government on the auction of the spectrum was right and had exposed the BJP-led Opposition's attempts to mislead the people on the issue
  • The government works for the benefit of the people and not for raising the profits of businessmen and corporates

BJP BLASTS GOVT

  • The government's faulty telecom policies, policy paralysis and shoddy handling of economy are the prime reasons for the poor response to the 2G spectrum auction
  • The government is blaming CAG, Trai, Supreme Court and everybody except itself. The attack on CAG is completely unfounded as circumstances have completely changed in the last four years
  • The revenue of Rs 9400 crore is much more than the money earned in 2008


In association with Mail Today

Youtube
  • Print

  • COMMENT
BT-Story-Page-B.gif
A    A   A
close