Despite differences, Pranab vows to start 3G auction this year

Even as the defence ministry continues to be reluctant to release spectrum for the much-delayed 3G or third generation auction, finance minister Pranab Mukherjee on Thursday expressed confidence of resolving the issue to start the process in 2009.

With an estimated Rs30,000 crore of revenue at stake to help bridge a yawning fiscal deficit, Mukherjee has categorically told communications minister A Raja that auctions for licences for 3G telecom services cannot spill over to the next calendar year under any circumstances.

"I am trying ... a couple of days back, I came to know details of the memorandum of understanding signed between the ministries of communications and defence - there are some clarifications that are needed, that we would sort out," Mukherjee told PTI in New Delhi.

Raja had sought the finance minister's intervention in persuading the defence ministry to release spectrum for 3G services so that the auction could take place on time. In a letter to Mukherjee, he had held the defence ministry responsible for the slippage in the time schedule for the auction process for 3G spectrum.

Asked whether the government would be able to complete the process in 2009, Mukherjee said, "The process must start now to be completed (this year)."

The defence ministry has decided to release only that 3G spectrum which is to be auctioned, and that too in phases. In fact, the armed forces are not ready to release spectrum already in use as envisaged in their agreement with department of telecommunication.