Decision on scrapping of S-band spectrum next week

NEW DELHI: As the Opposition ramps up pressure on the UPA Government to come clean on the S-band spectrum controversy, sources indicated that the Cabinet will take a decision on scrapping the contract at its meeting next week.

The issue has brought the prime ministerial establishment under stress after ISRO chairman K Radhakrishnan, who is also ex-officio secretary of Department of Space, admitted that the two satellites that ISRO intended to launch were for the use of Devas Multimedia.


While addressing a press conference here on Tuesday, Radhakrishnan had said that the Cabinet was not explicitly told about this decision. The prime ministerial establishment is certain to find it difficult to explain this serious failing as the Department of Space functions under the direct charge of the prime minister.


The slow response of the PMO on the issue is also being questioned by many in the ruling side. The Law Ministry had flagged the PMO's attention on the spectrum deal six months ago and even described the contract as "illegal." In its opinion given to the PMO, the Law Ministry had said that the contract should be scrapped in "national interest".


Quite expectedly, the Opposition unleashed a major offensive against the prime minister and charged him with presiding over the "most corrupt" government.


In Chennai, AIADMK chief J Jayalalithaa said it was time the prime minister broke his silence on the S-Band spectrum scam. "How the prime minister, an economist of repute, can be a silent accomplice to such gross misdemeanours is beyond me. Singh has to break his silence and come clean," she said in a statement.

Otherwise, people would lose faith in the central government and the "nation will become a laughing stock before the whole world," Jayalalithaa said. Jayalalithaa alleged the sale was made by the commercial arm of ISRO, Antrix Corporation, and the allotment done without following a competitive bidding process and in total violation of the guidelines for such sale.

Last year, the Union government had auctioned 15 MHz of similar airwaves for Rs 67,719 crore.