Budget 2012: Spectrum auction to raise Rs40,000 cr

The government on Friday said it aims to raise Rs40,000 crore through auction of spectrum, including the airwaves to be freed by cancellation of 122 licences as per the Supreme Court order.

In total, the government is targetting a revenue of Rs58,217 crore in 2012-13 through the auction and various other fees and charges in the communication space.

"...Rs40,000 crore (of non tax revenue) is estimated to be from telecom spectrum auction," as per the Union Budget proposals presented by Finance Minister Pranab Mukherjee in Parliament today.

The Budget has proposed to raise a total non-tax revenue of Rs58,217 crore in 2012-13 from 'other communication services', as against just Rs16,550.83 crore.

These would also include receipts from spectrum held in excess of 6.2 MHz and receipts from auction of spectrum available with government, including spectrum to be vacated by 122 licences, in view of the order of the Supreme Court.

The Supreme Court, in its February 2 order, had quashed 122 2G mobile phone licences given in 2008 under the then telecom minister A Raja terming them illegal.

The apex court had also asked the government to conduct fresh auctions within four months of the order.

For the next fiscal, the government also aims to raise funds in form of licence fee from telecom operators, receipts on account of spectrum, usage charges and auction of Broadband Wireless Access spectrum currently in use by Central PSUs.