2G: PM, Chidu notings show they knew what Raja was upto

The cancellation of 122 telecom licences by the Supreme Court raises the big question: who was responsible for it? Was it only the then Communications Minister Andimuthu Raja? Or did the prime minister and then Finance Minister P Chidambaram also have a role?

Below, Firstpost reprints the exact statements and notings of key players in 2007-08. From these you can make your own judgments. Given below are the statements made by the PM, Chidambaram and Raja himself at various points of time before the licences were issued on 10 January - and after.

Prime Minister Manmohan Singh (In a letter to A Raja on 2 November 2007): 

“A number of issues relating to allocation of spectrum have been raised by telecom sector companies as well as in sections of the media. I would request you (A Raja) to give urgent consideration to the issues being raised with a view to ensuring fairness and transparency and let me know of the position before you take any further action in this regard.’'

A Raja in his reply to the Prime Minister on 2 November 2007: 

“I have already written to you a letter earlier today clarifying the position on (the) processing of large number of applications received for fresh licences. Before giving clarifications to the averments contained in the Annexure to your letter, I would like to inform you that there was, and is, no single deviation or departure in the rules and procedures contemplated, in all the decisions taken by my ministry and I further assure you the same in future also.”

DS Mathur, Secretary, Telecom, in his letter to the Prime Minister’s Principal Secretary TKA Nair on 6 November 2007

“Department of Telecom has taken decisions to work out revised subscriber-based spectrum allocation criteria and processing of pending applications, etc, for grant of Unified Access Services Licences (UASL). The above decisions have been publicised for information to public through Press Release.''

A Raja, in his letter to the Prime Minister and then External Affairs Minister Pranab Mukherjee on 26 December 2007:

“Kindly refer to my letters dated 2.11.2007, and subsequent personal discussions with you (Manmohan Singh) on various issues related to telecom sector. As discussed with you and I also had several discussions with the External Affairs Minister (Pranab Mukherjee), who is also heading GoM (Group of Ministers) on vacation of spectrum on these issues… DoT follows a policy of first-cum-first-served for granting LoI (letter of intent) to the applicants for UAS licence, which means, an application received first will be processed first and, if found eligible, will be granted LoI… Since the file for issue of LoI to all eligible applicants was approved by me on 2-11-2007, it is proposed to implement the decision without further delay and without any departure from existing guidelines.''

“As I have already promised to you, my efforts in this sector are intended to give lower tariff to the consumer and to bring higher tele-density in the country, more specifically in rural areas.”

“In these circumstances, the discussions with the External Affairs Minister and Solicitor General of India have further enlightened me to take a pre-emptive and proactive decision on these issues as per the guidelines and rules framed thereunder to avoid any further confusions and delay.”

Prime Minister Manmohan Singh in his letter to A Raja on 3 January, 2008

“I have received your letter of 26 December, 2007 regarding recent developments in the telecom sector. With warm regards.”

Pulok Chatterjee (who was in the PM’s Office), in a letter dated 31 December 2007 toTKA Nair, just 10 days before Raja rolled out 122 letters of intent (LoI) on 10 January 2008.

“As directed by Principal Secretary (TKA Nair), I have prepared a comprehensive chart that gives various recommendations on each issue. The last column gives certain suggestions. Principal Secretary may like to see.”

PM Manmohan Singh’s Noting (written by TKA Nair) on Pulok Chatterjee’s draft Note: 

“PM says the DoT (Department of Telecom) has issued licences today. That may be taken into account and the issues accordingly modified and submitted to him please.”

Pulok Chatterjee added two more points, as enunciated by DoT, in his note on the advice of the PM and again submitted his `draft’ note on 15 January 2008:

“The outlines of the above suggestions may be forwarded to him for consideration on the basis of individual consultations with the main players and Trai.’’

PM wrote (says TKA Nair) on Pulok’s note on 23 January 2008:

“PM wants this informally shared with the Deptt (Departments). Does not want a formal communication and wants PMO to be at arm’s length.’’

P Chidambaram, in his letter dated 15 January 2007 to Prime Minister Manmohan Singh after awarded the licences:

“This leaves the question about licensees who already hold spectrum over and above the start-up spectrum. In such cases, the past may be treated as a closed chapter and the payments made in the past for additional spectrum (over and above the startup spectrum) may be treated as the charges for spectrum for that period.”

For the future, however, Chidambaram offers auction of spectrum in the same 15 January letter:

“Spectrum is a scarce resource. The price for spectrum should be based on its scarcity value and efficiency of usage. The most transparent method of allocating spectrum would be through auction. The method of auction will face the least legal challenge. If government is able to provide sufficient information on availability of spectrum, that would minimise the risks and, consequently, fetch better prices at the auction. The design of the auction should include a reserve price.”

Chidambaram wrote the above paragraph in ‘bold letters’ to Manmohan Singh.