Govt. receives bids worth just Rs.9407 crore as 2G auction ends

In February, Supreme Court of India cancelled 122 licenses which were granted to nine carriers by the telecom minister A Raja in 2008. At that time the Government was ordered to conduct fresh auctions at the present price which has been going on for the last couple of days and the results are out.
The fresh 2G spectrum auction has fetched the government just Rs.9,407 Crore whereas it was expected by the government that they might earn Rs.40,000 Crore from it. Unfortunetly this amount is a little less than the Rs.9,500 Crore that was fetched by the previous auction conducted by A.Raja.
All the 22 telecom circles ry have been put by the Govt. on auction but the response was lukewarm. Important circles such as Delhi and Mumbai did not get any bids as the operators felt that the base price for the spectrum in these circles were too high. Also circles such as Karnataka and Rajasthan also did not see any bidders. The Government had decreased the approximation earning from Rs.40,000 Crore to Rs.20,000 Crore when it cancelled the CDMA auctions as the only two bidders move back from the auctions.