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PMO Could Come Out With New Norms

India is looking to auction 5G spectrum and commercial mines for coal

PMO Could Come Out With New Norms

After a not so encouraging experience in auctions of coal mines, 4G spectrum, solar and wind, several ministries have started lobbying with the Prime Minister's Office (PMO) to look at alternative means to sell natural resources. One suggestion is to go for revenue sharing. At least three ministries have written to the PMO asking for the methods to balance the requirement to increase income and develop sectors.

India is looking to auction 5G spectrum and commercial mines for coal. The earnings from auctions form a sizeable portion of the government's non-tax income.

After the Supreme Court struck down 2G licences in 2012 and allocation of coal mines, India switched to the reverse bidding method (except for roads). Corporate houses blame many peers of bidding at 'unviable' prices, which leads to either disputes with the government or squatting of assets, both of which do not help businesses. The PMO is preparing a note, and will ask ministries to provide feedback.

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