PM acknowledges differences between 2G, 3G prices

Prime Minister Manmohan Singh on Monday said that although there is a huge gap in the prices of spectrum for 2G and 3G services, the whole issue needs to be seen in proper perspective.

The pricing for 2G spectrum was based on policies that were already in place and had approvals of telecom regulator TRAI, he said at a national press conference to mark UPA-II's one year in office, quoting Telecom Minister A Raja as having told him.

Asked about Raja facing allegations of corruption in sale of 2G spectrum, Singh said that since investigations were on in the case he would not like to offer his opinion on the issue.

"This matter has been discussed in Parliament. I have also discussed this issue with (Communications Minister) A Raja and he has told me that what he did was implemented the policies which were in place. . . That he has the recommendation of TRAI and of the telecom commission supporting the course of action," Singh said.

The opposition has alleged a Rs 60,000 crore (Rs 600 billion0 scam in sale of 2G spectrum (radio waves) in 2008 at 2001 prices.

Singh said that some complaints were received by CVC (Central Vigilance Commissioner) about issues related to 2G spectrum allocation.

"CVC has asked the CBI to look into this and that process is on and pending that investigation, it is not proper for me to express any definite opinion," he added.

The CBI had last year searched offices of the telecom ministry in connection with the 2G spectrum sale.

"It is certainly true if you compare figures what was collected by 2G process as against 3G process there is a huge gap," Singh said.

But, the prime minister added, "I think one has to look at the whole problem in proper perspective. There was a particular policy which was in place since 2003 before our government came in power. Raja's point was that it would amount to discrimination against new players."

"I would like to say that our government has been very clear that right from the beginning that corruption is a problem and if I come to know if there is any involvement at any level in corruption, we will take action," he said.