October 2, 2008
We hear that the finance ministry wants the auction base price for 3G to be raised from Rs 2,240 crore. It makes its case by pointing out how the Mumbai-based Swan Telecom, which received spectrum in Delhi, was valued at Rs 9,000 crore by an Abu Dhabi-based operator without even an active subscriber base. But Telecom Ministry officials feel it could overprice the spectrum.
With the rupee depreciating rapidly this year, the Commerce Ministry, we are told, is about to withdraw the sops given to exporters last year to offset the currency’s appreciation. But, the exporters are lobbying for an extension.
Their argument: they have made significant marked-to-market losses in the forward markets and still need a helping hand. It remains to be seen whether this cuts any ice with the government.