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Telecom Minister Kapil Sibal said the Supreme Court has criticised the first-come-first-serve policy. “This was set by the NDA. Its Cabinet passed it on October 31, 2003. We followed it. The court found the policy discriminatory, not the fact that we followed it,” Sibal said.
Sibal also said the government has learnt a lesson from the verdict -- “ministers must consult all on policies and not commit irregularities”.
He ducked a question on why the UPA government should blindly follow procedures put in place many years ago. He was asked why the UPA thought that the NDA policy was "cast in stone".
Sibal was also flustered when asked why licences granted by NDA telecom ministers were not cancelled if the Supreme Court only found the policy faulty, and not its implementation. "At that point of time, we thought the first-come-first-serve policy was okay. Now we shall reconsider," Sibal said.
Nearly four hours after the Supreme Court's verdict to revoke 122 telecom licences given by A Raja, Kapil Sibal said the judgement had ended the two years of uncertainty in the sector and brought clarity on how things would now be taken forward.
“We welcome the verdict, we will wait for TRAI's recommendations and proceed with the direction of the court,” Sibal said.
Sibal said the court's verdict was consistent with the government's policy. “I have said earlier that we will delink licence from the spectrum,” he said. He assured corporates that the government would have fresh rules in place within four months – the deadline set by the apex court to set the ball rolling on the way forward on spectrum sale.
Sibal said the court's castigation of Raja was also in keeping with the government's views on the issue – “if the minister has committed irregularities, they will be looked into”.
Dismissing the view that the Supreme Court's judgement cancelling 122 2G licences was an indictment of the government's policy, Sibal said the government would now move forward in the issue after regulator TRAI make its recommendations.
"There is no indictment of the Prime Minister or the then Finance Minister (P Chidambaram) in the Supreme Court's judgement. If there is any indictment it is of the 2003 policy (first-come, first-serve) of the NDA government and we only followed it," he told a press conference after the Supreme Court judgement on the issue.
The government will abide by the judgement that spectrum should be auctioned which, he said, the ministry has done by delinking spectrum from the licence in 2011 after he took over.
He reiterated the UPA only followed the policy of the NDA government, which has now been declared discriminatory by the apex court. The BJP, therefore, must apologise to the nation from the nation for causing huge loss to the government, he said.
Asked about the implications of the judgement on companies like Telenor of Norway and Sistema of Russia who have pumped huge money to roll out services, the minister said any agrieved corporate can approach the court for relief.
The confusion has been removed and clarity has been brought in the sector and this will help in getting investments in the important sector.
While blaming the NDA for the 2003 policy which the UPA implemented, he sought to shift the blame on then telecom minister A Raja.
"The Supreme Court has clearly said the then minister (Raja) did not heed to the good advice of both Prime Minister Manmohan Singh and the Finance Ministry," Sibal said. Sibal said there was problem in the implementation of the policy and "that is why Raja is where he is".
At the same time, in reply to questions, he denied he was blaming Raja or the UPA ally DMK. "DMK is our valued ally and they will continue to be our valued ally," he said.
Asked whether Chidambaram was guilty of omission by not preventing the scam, he said there was no time for Chidambaram to know that wrong was being committed.
Asked whether the first come policy, which is also applicable in other sectors like mining, could be impacted by the judgement, the minister said: "It could be."
He, however, said the government would not preempt a revision of the policy in other sectors.
"Why should we preempt, there are statutes in other sectors, let the Supreme Court strike it down," he said.
Sibal said the court ruling has brought clarity to a sector that has undergone much uncertainty for the last two years and one that is also ''crying for the investments''.
About losses to the government, he said: "There is no question of loss if the policy is right. If it is wrong, then you will have to calculate losses from October 2003 when the policy was implemented."
Asked what lesson the government has learnt from today's judgement, Sibal said "ministers must consult everybody... and not commit any irregularity."
Asked about the implications of the apex court's verdict on customers, Sibal said: "The Supreme Court by its order has also made sure that customers are not affected. Why? Because this order will not be operative for a period of four months. In the meantime, TRAI will give recommendations and we will auction spectrum. Customers will not be impacted."
He also said the financial implications of the verdict are yet to be seen.
Earlier, Trai had issued a draft exit policy seeking comments from the stakeholders aimed at providing a route to companies which want to leave the telecom sector.
While stating the details were still being worked out, DoT officials said an estimated 536 Mhz of 2G spectrum would be freed following the cancellation of the 122 licences.
"Barring five out of the 122 licences, all have been allotted 4.4 MHz each," DoT Secretary R Chandrasekhar said. When asked if the order would affect FDI inflow into the sector, he replied it would be on the contrary.
"After the Supreme Court verdict, there is clarity, sanity and hope that it will get larger investors in the sector," Sibal said.
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IN THE LIGHT OF TODAY'S JUDGEMENT OF THE SUPREME COURT CANCELLING 122 TELECOM LICENCES, THE UPA GOVERNMENT LED BY MANMOHAN SINGH HAS NO MORAL AUTHORITY TO CONTINUE. MR.KAPIL SIBAL MAY INTERPRET THE JUDGEMENT IN ANY MANNER HE LIKES, I THINK MR.MANMOHAN SINGH SHOULD TAKE NO TIME IN RESIGNING.
The reason for electing a new government is to ensure that all the flaws of the past government will be taken care and have a better governance for the future. What Mr Sibal says is childish.
This is the price of democracy! These ministers will explain anything and hope to get away with it. Who is bothered about the millions languishing in utter poverty. Shame on us. Oh God! Save our motherland India.
PM MMS did a great job with his economic polices and lifting up a 400 million Indians from poverty. But PM lacks management skills and leadership skills to lead a complicated country like India. You need Neta with Iron hand to rule. It is time PM resigns like Dhoni offered to resign.
The UPA Governement has been ruined by Lawyers who have been appointed as Ministers. Always in a democracy politicians should be ministes and not the Advocates. More astonishing is the fact that in UPA only lawyer Ministers have the say and not politican Ministers
As far as the pricing goes the policy implemented by the NDA (NTP-1999) was a good one; by moving away from a high upfront charge to revenue sharing it brought down the tariff. It was only after that the growth took place and reached 900 million. It is true that the UPA followed the same policy on pricing, as advised by TRAI from time to time. But where it went awry was in the implementation as there was no transparency in the allotment of licences and several non-serious players given out of turn. However cancellation of 122 licences after 4 years portends problems for investors and lenders as well as to some 60 million subscribers in those companies. Further the directive to auction licences does not augur well to the subscribers. This may lead to higher upfront charges as existed prior to 1999 and a hike in tariff. It raises question whether other scarce resources (land for housing, mining, power) /commodities like coal, oil etc would also be auctioned for higher revenue.
"Ohh..I just followed it!" Sitting on the top, we expect something more than following...
SIBAL IS TELLING "UPA HAD NO BRAIN OF ITS OWN"? THEN WHAT RIGHT YOU HAVE GOT TO RULE THIS COUNTRY?
Yes you can think all the public are mere fools and you can tell them anything and get away with it. Well - this is a democracy and people do have the power to get rid of rubbish. There is no limit to UPA's spouting of utter rubbish - taking the citizens for complete fools
WHAT EVER MR.KAPIL SIBAL MAY SAY, AFTER THE SUPREME COURT VERDIT OF CANCELLING 122 TELECOM LICENCES I THINK CHIDMBARAM HAS NO MORAL AUTHORITY TO CONTINUE AS A MINISTER. HE MUST QUIT OR BE REMOVED BY THE PRIME MINISTER.
so u guys are followers and not leaders? then kindly step aside. Mr Zeroloss, it is because of illogical blabbermouths like you and your colleagues this country is stinking. Even after an hour post the verdict was out the Sensex was 105points up. Which shows that the investors have confidence still left in the judiciary of the country (if sensex is any factor to go by) Thirdly, all the cancelled licences are post 2008 licenses ie the ones issued during UPA regime and not NDA regime. And lastly stop speaking with the thought that people are fools.
Well NDA was never an ally of UPA.Then why UPA followed NDA policies without applying their mind.It is a irrational alibi defying simple logic of existing rivalry both UPA & NDA are known for. Why did they not presented that plea to the SC?.... One can learn from Mistakes but Blunders are made consciously without any room for admission or learning.
Wow Sibal has a new theory!!! 'Mere follow Theory'... the first one was Zero Loss theory... Ha ha ....! He; one of the crooks we need to suffer
Naaach na jaane aangan theda. This government cannot stop Raja from doing corrupt allocation and they are blaming the NDA Govt. And the to top it all Sibal says there is a zero loss. For misleading the nation he should resign forthwith. Now, within four months, licencing process will happen again and to prove his point that there is zero loss, Sibal may resort to unholy and even corrupt practices to manipulate the allocation at the same prices at which they were offered in 2008. The Supreme Court should direct that Sibal should not preside over the re-allocation of licences. It should be handed over to the TRAI.
Though, I was never a supporter of Congress, I always had a lot of respect for Kapil Sibbal. But the way he talks and make nonsensical statement for past few years I think he is a biggest educated duffer the country has ever seen!!
I fully agree with this. Instead of using his brain for doing something good for the country, he comes out with totally sick and nonsensical arguments to defend the currupt government and bad policies
Mr SIbal is wrong to say they had just followed the NDA policy. They should have reviewed it. But at the same time, there should be transparency when the policy of the previous government in changed, giving sufficient time to the stakeholders to work out their business plans in line with the changing situation. No policy is cast iron. But the policy can not be changed everytime there is a change in the government. This brings in policy uncertainty, which is the bane of the Indian policy. The result of all this will have to be watched how the future investments are going to behave. May be it will bring the much-needed stability. If that takes time, foreign investors or local investors will have to give a good bye to investing,a huge repurcussion on the economy, employment. Whether 2G scandal has destroyed the investments potential or it will give a further boost only time will tell. But it has become a political and personal scoring point. Very said picture
If the problem is caused by policies of NDA govt they should be punished undoubtedly, but how can someone say they "merely" followed it..? are u runing roadside shop to be so irresponsible..? why didnt u think that u r answerale to a Billion people when u "merely" follow a policy with out thinking , that i has an effect on the life of millions of people..?
NDA had created a good practice, by making non-political, un-biased, Icon of India Sri Abdul Kalam as President. Then, Why did not the UPA govt followed it. From where did you learn the art of "Not taking any action and maintaining silence on corrupt ministers" until the courts interfere and force for it. Why did not PM give reply for 1 and half year on a petition to permit legal case against one of his minister? From whom did you learn and follow this?
If you got power to do what non sense the NDA has done during their period, then why you UPA scrap the POTA???
if UPA was brought just because to follow NDA, then why people of India changed NDA and brought UPA?