The Comptroller and Auditor General, CAG today criticized the Telecom Ministry for giving Mukesh Ambani-led Reliance Jio Infocomm undue benefit of over Rs 3,367 crore by allowing it to provide voice calling on broadband spectrum. In its report tabled in Parliament today, CAG said Reliance Jio was the first firm to seek a universal license for voice services after the government permitted Internet service provider license to migrate to universal license. Reliance Jio Infocomm paid universal licence entry fee of Rs 15 crore and additional migration fee of Rs 1,658 crore in August 2013. CAG said, the entry fee of Rs 1,658 crore was discovered in 2011 through the bidding for the 4th Cellular Licenses and this price did not reflect the present value as on August 2013. Taking into account the cost inflation in the economy for the period from 2011 to 2013 the value of licence would have been at least Rs 5,025 crore. It said, the migration resulted in undue advantage.The CAG report also said Bharti Airtel made an undue gain of Rs 499 crore because of Department of Telecom's decision to merge Chennai telecom circle with Tamil Nadu in a hasty manner in 2005.
News On AIR | May 8, 2015 9:01 PM
Undue gain of Rs 3,367 crore to RJio, Rs 499 crore to Airtel: CAG