9:00 am IST
Feb 6, 2012

Economy & Business

Economics Journal: Why the 2G Verdict Is a Win

    • Completely agree with your POV. Though we claim to have come a long way since liberalisation, license raj still exists in its modified form of quota systems and auctioning! This is only a way forward to crony capitalism and nothing else. Rajas and Chaddhas will be pop up every now and then unless we constitute a fair and transparent mechanism for auctioning of every license/resource. High time we reduce Govt control over various body and keep it limited only to administer and regulate rather than auction it. Kudos to Mr Swamy and media to have brought this in public domain.

    • Congratulations Mme. Yo have very clearly explained the long term benefits of the SC verdict on 2 G and its long term impact on the licence quota permit raj perpetrated by these corrup govts.

    • Nice one. Made good reading.

    • If closed tenders are not an optimal way of discovering the correct price, why do all major government contracts prefer through closed bid tendering rather than an open auction? Is there any additional benefit that a closed bid tender offers over open auction?

    • Economically the argument is sound. However, I have two questions to anyone who has the knowledge to answer -
      1. Why does the cancellation of the licenses not affect the oldest players in the market (Airtel, Vodafone, etc.)? Did they pay equivalent license fees when they entered the market?
      2. Current 3G tariffs are almost unaffordable and does not provide any benefit to most consumers. The high tariffs are mostly driven by the gargantuan license fees paid during the auction. Does it really make common sense that a technology cannot be used and benefited from because of the high barrier to entry?

    • All well and good but what happens to service providers who followed the rules and now have their licenses revoked for the trouble after sinking in billions?

    • Good article!

    • Good article! Hope India makes the double digit growth.

    • Only after 2G scam, I came to know that almost all the resources were being given away without auction. I mean, it is so obvious that auction is most logical method to give out public resources to corporation who are after profits all the time.

      You can not imagine how outraged I became that Supreme Court has to teach our politicians and babus that auction is the best way to go. I am sure though, that non-auction policy will be pursued unless persons like Swamy come and chase these dogs.

Add a Comment


About India Real Time



    • India Real Time on Twitter
    • India Real Time on Facebook