The finance ministry has proposed a reserve base price of Rs.4,040 crore for third generation (3G) spectrum auctions and the final announcement could be made in a week, IT and Commmunications Minister A. Raja said Friday.
"It is a proposal by the finance minister. We have discussed the matter with the Prime Minister," Raja told reporters after meeting Finance Minister Pranab Mukherjee.
"The matter will be referred to the GOM (group of ministers) or the CCEA (Cabinet Committee on Economic Affairs)," he added. "We are hopeful of a decision within a week."
The government, reeling under a burgeoning fiscal deficit pegged at Rs 332,835 crore or 5.5 percent of the GDP, hopes to get some relief from the funds generated through these auctions.
"If you calculate using just the base price at Rs.4,040 crore, the government will earn about Rs.24,240 crore," said a senior official in the telecom ministry.
"There will be an announcement on these lines in the upcoming union budget also," the official said.
"Six 3G licenses will be auctioned," he added.