Election casualty: Policies relegated to backburner

Several government policies and decisions would be on hold now that the model code of conduct has come into effect ahead of the Lok Sabha elections. Even where the code is not a hurdle, a government in election mode is not keen on taking too many decisions.

TELECOM:
In the telecom sector, auction of spectrum for third generation (3G) telecom services, which was scheduled for January, can now only be held after June once the new government comes to power. The Cabinet recently referred the matter of 3G auction to a group of ministers (GoM) and a verdict is not expected at a time when election dates have been announced, said sources. It is another matter that recently communications minister A Raja had said that 3G auction would be held before March 31. Meanwhile, one would have to make do with 3G services of state-owned telcos — BSNL and MTNL.

Along with the 3G auction, vacation of spectrum by defence forces has also been halted. Although representatives of the Department of Telecommunications (DoT) and the ministry of defence were scheduled to meet on February 23 to finalise the memorandum of understanding (MoU) on the modalities for spectrum vacation, no meeting took place. Officials familiar with the situation said an MoU on spectrum vacation looks unlikely in the current circumstances.

After the MoU, the defence forces would have vacated 10 MHz of 3G spectrum that could be utilised by mobile phone firms when they offer 3G services.

Vacation of 45 MHz of spectrum (including 2G and 3G) — which was the total demand of the DoT — would have taken around three years after the signing of the MoU. Now that the MoU is not in sight, vacation of spectrum would take much longer.

It would have cost the DoT Rs 14,000 crore to build an alternate fibre optic communication platform for the forces in lieu of their vacated spectrum.

Mobile number portability, which means a subscriber can retain his phone number while switching over to another service provider, would also not be a reality anytime soon. It was scheduled for launch by mid-2009, but is all set to be indefinitely deferred. The Telecom Regulatory Authority of India (Trai) is yet to start a consultation process for deciding the porting charges.

POWER:
Also, look at the power sector. Even as the government has signed the nuclear accord with the United States — after facing stiff opposition domestically and losing one of its key allies over the issue — little has been achieved in terms of policy amendments back home to facilitate increased power generation using nuclear fuel. Other than the state-run Nuclear Power Corporation of India Ltd, the government has so far allowed only NTPC Ltd to be a minority partner in establishing and operating nuclear power generation plants. The other companies cannot hope to grab a pie of the opportunity till a few crucial amendments are made to existing laws surrounding nuclear power generation. The government, however, may be acting cautiously by moving step-by-step, given the humongous amount of security issues involved in nuclear power generation.

While on the power sector, the government is yet to approve awarding a bulk order for supplying 11 units of supercritical power generation sets each of 800 mw.

The award of order for 11 units at once was envisaged in the year 2005, but the issue had been hanging fire for long, with the Ministry of Power and the Ministry of Heavy Industry being virtually at loggerheads on award of the contract to the state-run equipment maker Bharat Heavy Electricals Ltd (BHEL). The issue, even as it stands resolved now - with order for at least five units slated to go to BHEL, provided it matches the price quoted by the lowest bidder emerging out of international bidding process - the bidding is not expected to be called within the present regime. The finalisation of bids and award of contracts will likely take another six-seven months.

AVIATION:
In the aviation sector, while many significant decisions (development fees for greenfield and brownfield airports, setting up of the Airports Economic Regulatory Authority, allowing Delhi International Airport to generate funds for development by charging passengers) were taken by the UPA regime, some issues are hanging fire due to last-minute changes in the parameters for private participation. These include development of 35 non-metro airports. Also, no decision has been taken on whether an international airport could come up at Greater Noida. But then, since an airport at Greater Noida is being sought by UP chief minister Mayawati, political considerations rather than procedural delays may have forced the Centre’s hand.

MEDIA:
In the media sector, the tender process for the third phase of private FM radio is not likely to take place anytime before the year-end, it is learnt. The information and broadcasting (I&B) ministry is believed to be ready with a Cabinet note for changes in the FM radio policy, but an approval is not likely soon with the government in the election mode. Currently, news and current affairs-based programmes are not allowed on private FM radio stations. But, phase three is expected to allow news in a limited manner on private FM radio stations. Cabinet approval is required for the same.