Govt resolves 3G auction issues, will set date to maximise revenues

The government is not sure if it can conduct a 3G wireless spectrum auction

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before the end of the current fiscal year, the finance secretary said on Tuesday, which could possibly widen the fiscal deficit for 2009-10.

If the auction is delayed beyond March 31, when the financial year ends, India's fiscal deficit could go beyond the currently projected 6.8 per cent of the 2009-10 GDP.

"The issues relating to 3G auction have been resolved, but I can't say whether the actual auction will happen before 31 March," Ashok Chawla said.

Cabinet Secretary K M Chandrasekhar said that it does not matter if the 3G auction happens in this fiscal year or the next, and setting a date will be done according to how to maximise revenue from the auction.

"I think all the issues have been resolved," Chandrasekhar told reporters. "I don't think it really particularly matters if this year or next year."

The auction has been deferred since January on differences with the defence ministry which possesses much of the airwaves. The lack of this revenue this fiscal year ending on March 31 will impact India's fiscal deficit, which is at a 16-year high.

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