Vote on Account 2014: Government to raise Rs 39K crore next fiscal from communication

NEW DELHI: The government expects to raise Rs 38,954 crore in the next financial year from communication services including proceeds from spectrum auction and related charges.

In 2014-15, government expects revenue of Rs 38,954.02 crore from communication services, which include receipts from spectrum sale, licence fees and one-time spectrum charges, according to the Interim Budget presented today by Finance Minister P Chidambaram.

"Receipts under 'Other Communication Services' mainly relate to one-time spectrum charges levied as per the recommendations of TRAI, Auction of 1800 MHz and 900 MHz spectrum and receipts from 800 MHz spectrum," said the budget.

"Department of Telecom collects recurring licence fees from various telecom operators licensed by it. It also collects one time entry fees from new operators," it added.

The Department of Telecom has recently concluded the spectrum auction for radiowaves in the 900 Mhz and 1800 Mhz bands that lasted 10 days and fetched the government Rs 61,162 crore, of which Rs 18,296.36 crore will flow to the exchequer within this fiscal, ending March 31.

The government was initially expecting only Rs 11,300 crore to come from the spectrum auction in the current year.

The government had put on the block about 385 MHz of radiowaves in the 1800 MHz band, and 46 MHz in the 900 MHz band. At the base price, that cumulatively amounted to about Rs 47,933 crore.

The government will also meet its revenue target of over Rs 40,847 crore in 2013-14 from the communication services, mainly on account of the auction and related charges.

The Budget has listed Rs 40,847.06 crore as the Revised Estimate for the current fiscal ending March 31.