Tuesday 11 May 2010

Deferred Accelerated Revenue Receipt Every Year, are you kidding me?

The Department of Telecommunications (DoT) has defended the telecom minister's actions in awarding 2G spectrum to operators in 2008 as per an article in the ET. I do not understand the term but I am assuming that it means increasing revenues that will accrue in the future. When awarding carbon credits there is something called a baseline criterion. Please correct me if I am wrong, but as far as I know this means that there should be emission reductions in excess of what would have been there anyway had the CDM (Clean Development Mechanism) or JI (Joint Implementation) project not been implemented. Only then are carbon credits given. 

If I may take an analogue, revenue will accrue to the government irrespective of whether or not spectrum was auctioned. So the argument of the DoT does not seem to hold water. They also talk about India being a different market where profits in the telecom sector are of secondary concern. All of this is beside the point that giving away spectrum at such low prices was not something that should have been done. The DMK is steadfast in its defence of its MP. The point is whether or not he deserves to be.

Also, what is Jairam Ramesh thinking? Does he even remember 1962? I am not asking ourselves to be demonized by the past, but look at the situation! China is Pakistan's "all-weather friend". It is developing has developed a fighter in coordination with Pakistan. It is accused hacking into computers worldwide, with or without government approval. What was the minister thinking badmouthing his own government in a foreign nation? He says the Home and Defence ministries are being paranoid. These are the ones who are expected to know the security situation, not an environment minister. Does he know about Chinese listening posts on Myanmar's Coco Islands just off the Andamans? So will this turn out to be another Tharoor saga?

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