NEW DELHI, June 22 - The Union Cabinet today approved the mega-spectrum auction plan which is estimated to fetch about Rs 5.66 lakh crore to the exchequer.
�Yes, spectrum auction proposal has been cleared,� an official source said.
The Government expects to raise at least Rs 64,000 crore from the auction of about 2300 Mhz of spectrum and Rs 98,995 crore from various levies and services in the telecom sector.
According to sources, the main document of auction, notice inviting application, is likely to be issued by July 1, followed by pre-bid conference on July 6. The bidding is expected from September 1. The plans are yet to be confirmed officially.
As per the rules approved by an inter-ministerial panel, the auction would include sale of most premium 700 Mhz band at a reserve price of Rs 11,485 crore per Mhz. The cost of delivering mobile services in this band is estimated to be around 70 per cent lower than 2100 Mhz band, used for providing 3G services.
A company interested in buying spectrum in 700 Mhz band will need to shell out a minimum of Rs 57,425 crore for a block of 5 Mhz on pan-India basis. This band alone has the potential to fetch bids worth over Rs 4 lakh crore. � PTI