The Union Cabinet has fixed a minimum or base price of Rs 14,000 crore for the Supreme Court mandated auction of 2G-telecom spectrum. The Cabinet meeting chaired by Prime Minister Dr. Manmohan Singh decided to fix a reserve price at Rs 14,000 crore for 5 Mhz pan India in 1800 MHz band.

Breifing newsmen, Telecom Minister Kapil Sibal said as recommended by the Empowered Group of Ministers (EGoM), the Cabinet also decided to defer the issues related to pricing of spectrum pending outcome of the ongoing proceedings before the Supreme Court in the Presidential Reference.

The reserve price and Specturm User Charges are essential for the 2G spectrum auction bid process, which is being implemented by the Department of Telecommunications.

The apex court had in February this year cancelled 122 licences issued by the then Telecom Minister A Raja in 2008 and asked the Government to conduct fresh auctions by August 31.