CAG suspects new spectrum scam, bigger than 2G: Report

Agencies

New Delhi, 07 February 2011: Even before the 2G spectrum allocation scam gets unraveled in its entirety, the Comptroller and Auditor General (CAG) is said to be suspecting another, bigger than 2G, scam in the allocation of S-band spectrum.

 

According to a report published by a leading national daily Monday, the CAG is enquiring into a 2005 agreement between the Indian Space Research Organisation’s (ISRO) commercial arm Antrix Corporation Ltd and Devas Multimedia Private Ltd relating to the allocation of S-band broadband spectrum to the latter without the invitation of competitive bids.

 

Although, it is too early to decipher the exact figure, but the dubious allocation of spectrum is said to have caused a loss of Rs 2 lakh crore to the national exchequer, as compared to the Rs 1.76 lakh crore presumed loss due to the faulty allocation of 2G spectrum.

 

ISRO is under the Department of Science, which is directly in the Prime Minister’s charge. The company that allegedly benefited from the deal, Devas Multimedia, is headed by Dr M G Chandrashekhar, who was earlier scientific secretary at ISRO.

 

“Under the deal, Devas Multimedia is to get access to 70 Mhz of broadband spectrum in the 2500 Mhz band. This was once used by Doordarshan to deliver programmes by satellite to all parts of the country but is now considered to be of enormous commercial value for high-speed, terrestrial mobile communications. In 2010, the Union government got nearly Rs. 67,719 crore from the auction of just 15 Mhz of similar airwaves for 3G mobile services,” the report says.

 

The CAG suspects foul-play because unlike in earlier contracts, ISRO places no restrictions on Devas Multimedia for onward leasing of spectrum. That means the company could make huge amounts of money by sub-leasing its privileges.

 

This is said to be the first time that S-band, which ranges from 2500 to 2690 Mhz, has been opened up to the private sector. The CAG is concerned that ISRO’s internal procedures were flouted, while the Prime Minister’s Office, the Cabinet, and the Space Commission were not fully informed about the contract, including the underestimation of ISRO’s costs, report claims.