Consensus on reserve price, 3G auction soo

Finally, the long-awaited auctions of 3G spectrum, the airwaves that enable faster data download and video streaming on mobile phones, is poised to take place within two months.

The way for the auctions has been cleared on Tuesday after the finance ministry and the department of telecommunications (DoT) have buried their differences over what should be the minimum reserve price for the auctions. The two have agreed on a reserve price of Rs 3,510 crore, which is higher than Rs 2,020 crore proposed by DoT earlier and lower than Rs 4,040 crore suggested by the finance ministry.

Another significant development is that a 2% administrative charge, proposed by the Telecom Regulatory Authority of India (Trai), on the successful bidders annually has been dropped.

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High Court asks Ambanis to frame new gas pact

The Bombay High Court on Monday ordered Mukesh Ambani-owned Reliance Industries Ltd, India’s largest company, to sell natural gas to brother Anil Ambani’s Reliance Natural Resources Ltd at a price that is 44% lower than the price proposed by the government earlier.

The order could significantly impact the contours of the natural gas economy in the country. RIL has been asked to supply natural gas to RNRL for 17 years at $2.34 per million British thermal units. RNRL, however, cannot trade the gas but can use it as raw material in its power projects. Natural gas accounts for about 18% of the total energy-mix of the Indian economy.

An RIL spokesperson said: “The full text of the judgment of the honourable High Court has been received by us and is being reviewed by us.

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