Raja aims to slash mobile tariffs, hold 3G auction soon

Andimuthu Raja, who is back as the telecom and information technology minister for the second successive term, said bringing down mobile tariffs to 10 paise a minute for local calls and 25 paise a minute for STD calls would be on top of his agenda. He also said the 3G spectrum auction would be completed at the earliest.

At present local call rates in India vary from 40 paise to Re1, and national call rates from Re1 to Rs2 a minute. Raja feels there is enough scope for tariffs to come down and the policies followed during his previous stint would help in achieving this.

''There is still great scope for reduction in mobile tariffs in India, which are the cheapest in the world. Entry of more mobile service providers and our pro-consumer policies will help bring down mobile tariffs to 10 paise for local calls and 25 paise for STD. This is high on my agenda,'' Raja said.

The minister added that introduction of information technology at the lowest level in government to make possible paperless functioning is also on his agenda.

Moreover, he would also push for extension of tax sops for the IT and ITes sector. ''I will speak to the prime minister and the finance minister to extend the STPI benefits,'' said Raja.

Companies located in the software technology parks of India (STPI) are not taxed on revenues earned from exporting software (which includes writing codes or computers of US & UK companies). The incentive is available till March 2010. There are more than 8,000 STPI-registered units spread across the country.

The minister is likely to take charge next week as he, along with his other cabinet colleagues, flew to Chennai this morning to seek the blessings of their leader, Tamil Nadu chief minister M Karunanidhi.