Fresh row over ISRO's spectrum allocation
8 Feb, 2011, 01.18AM IST,ET Bureau
http://economictimes.indiatimes.com/news/politics/nation/fresh-row-over-isros-spectrum-allocation/articleshow/7448351.cms
NEW DELHI: The Opposition has found another weapon to target the UPA government following reports that the Comptroller and Auditor General (CAG) was scrutinising a spectrum deal done by the Indian Space Research Organisation (Isro). The CAG is looking into a 2005 agreement between the Indian Space Research Organisation's commercial arm Antrix Corporation and private company Devas Multimedia .
The private firm was leased around 60 MHz of the scarce S-band spectrum for 20 years for Rs 600 crore. ISRO was given the contract to launch two satellites for Devas too as part of the deal.
However, the CAG clarified on Monday that it had not made any findings but only audit of certain activities of the Department of Space were under way.
The Opposition attack followed reports in a section of the media in the Antrix-Devas deal. In a statement, CAG said that its attention was drawn to reports appearing in media regarding audit being undertaken by Audit and Accounts Department of DoS.
"The news item gives the impression as if our audit has been finalised. This office clarifies that audit of certain activities of DoS is under way. Very preliminary queries have been raised which are yet to be replied by that department. Since the audit is at very preliminary stage, it can by no stretch of imagination, be concluded that information as given in the media reports are findings of this department," the CAG statement said
ET had reported on August 10, 2010, that the Law Ministry had told the Department of Space that it could annul the Antrix contract with Devas. The Law Ministry's views were sought after Cabinet Secretary KM Chandrasekhar wrote to DoS, asking if the deal could be scrapped, following a huge sum raised by 3G spectrum auction. The hitherto virtually unnoticed deal attracted the attention of several ministries after the auctions for third-generation and broadband wireless airwaves raised over 1.06 lakh crore.
Devas, owned by former Isro official MG Chandrasekhar, sold a stake to a group of foreign investors, including Deutsche Telekom and private equity firm Columbia Capital, after the spectrum was allotted.
The Law Ministry had described the contract as illegal and said the government should take back the spectrum citing national interest, a top government official who had seen the Law Ministry's written opinion, had told ET.
Devas had clarified then that the deal was first approved by the Antrix board, which had Isro chairman, representatives from the Department of Space as well as eminent external independent members such as Ratan Tata. It was then approved by the Space Commission, whose members included the Cabinet Secretary, Minister of State for Science and Technology, the National Security Advisor and Isro chairman. It also said that in 2005, the Union Cabinet too approved the deal. The matter has now attracted the Opposition's attention after a national daily reported CAG was scrutinising the deal. Describing it as a scandal bigger than the 2G spectrum allocation, BJP and Left parties on Monday demanded a probe into the deal,
The issue may add to the woes of the UPA government, struggling to deal with the storm kicked up by 2G spectrum scam. The Opposition is firm on its demand for a Joint Parliamentary Committee (JPC) probe into 2G spectrum.
"It's a very serious scandal. The Department of Space comes directly under the prime minister. This whole affair is vitiated by fraud. The country is witnessing not only loss of revenue but also frittering away of its national assets," BJP spokesperson Nirmala Sitharaman told reporters here.
Besides seeking a probe, BJP demanded recovery of the spectrum and lost revenue. However, the party has not yet brought the new scam into the ambit of its demand for a JPC into corruption issues. Quoting media reports, Sitharaman said the private company has got 70 MHz of the spectrum space for just Rs 1,000 crore. The report had put the value of the loss at Rs 2 lakh crore. Ms Sitharaman also pointed out that the quantum of spectrum in the case of 2G spectrum was just 4.4 MHz. Alleging that the allocation was done very quietly in the private domain, she said Devas gets custom-made satellites and transponders.
The Left parties too termed the S-band spectrum issue as "very serious" and sought an investigation. "This is a new issue. ISRO is under the Department of Space which is under the prime minister. This is also a new scam," CPM polit bureau member Sitaram Yechury alleged.
CPI's D Raja said the revelations have added a new dimension to the 2G spectrum scam. "ISRO is directly under the control of Department of Space headed by the prime minister. It is very serious as ISRO deals with space and it has implications on our security," he said.
RSP's Abani Roy said the Left will seek inclusion of the new scam in the ambit of the JPC.
8 Feb, 2011, 01.18AM IST,ET Bureau
http://economictimes.indiatimes.com/news/politics/nation/fresh-row-over-isros-spectrum-allocation/articleshow/7448351.cms
NEW DELHI: The Opposition has found another weapon to target the UPA government following reports that the Comptroller and Auditor General (CAG) was scrutinising a spectrum deal done by the Indian Space Research Organisation (Isro). The CAG is looking into a 2005 agreement between the Indian Space Research Organisation's commercial arm Antrix Corporation and private company Devas Multimedia .
The private firm was leased around 60 MHz of the scarce S-band spectrum for 20 years for Rs 600 crore. ISRO was given the contract to launch two satellites for Devas too as part of the deal.
However, the CAG clarified on Monday that it had not made any findings but only audit of certain activities of the Department of Space were under way.
The Opposition attack followed reports in a section of the media in the Antrix-Devas deal. In a statement, CAG said that its attention was drawn to reports appearing in media regarding audit being undertaken by Audit and Accounts Department of DoS.
"The news item gives the impression as if our audit has been finalised. This office clarifies that audit of certain activities of DoS is under way. Very preliminary queries have been raised which are yet to be replied by that department. Since the audit is at very preliminary stage, it can by no stretch of imagination, be concluded that information as given in the media reports are findings of this department," the CAG statement said
ET had reported on August 10, 2010, that the Law Ministry had told the Department of Space that it could annul the Antrix contract with Devas. The Law Ministry's views were sought after Cabinet Secretary KM Chandrasekhar wrote to DoS, asking if the deal could be scrapped, following a huge sum raised by 3G spectrum auction. The hitherto virtually unnoticed deal attracted the attention of several ministries after the auctions for third-generation and broadband wireless airwaves raised over 1.06 lakh crore.
Devas, owned by former Isro official MG Chandrasekhar, sold a stake to a group of foreign investors, including Deutsche Telekom and private equity firm Columbia Capital, after the spectrum was allotted.
The Law Ministry had described the contract as illegal and said the government should take back the spectrum citing national interest, a top government official who had seen the Law Ministry's written opinion, had told ET.
Devas had clarified then that the deal was first approved by the Antrix board, which had Isro chairman, representatives from the Department of Space as well as eminent external independent members such as Ratan Tata. It was then approved by the Space Commission, whose members included the Cabinet Secretary, Minister of State for Science and Technology, the National Security Advisor and Isro chairman. It also said that in 2005, the Union Cabinet too approved the deal. The matter has now attracted the Opposition's attention after a national daily reported CAG was scrutinising the deal. Describing it as a scandal bigger than the 2G spectrum allocation, BJP and Left parties on Monday demanded a probe into the deal,
The issue may add to the woes of the UPA government, struggling to deal with the storm kicked up by 2G spectrum scam. The Opposition is firm on its demand for a Joint Parliamentary Committee (JPC) probe into 2G spectrum.
"It's a very serious scandal. The Department of Space comes directly under the prime minister. This whole affair is vitiated by fraud. The country is witnessing not only loss of revenue but also frittering away of its national assets," BJP spokesperson Nirmala Sitharaman told reporters here.
Besides seeking a probe, BJP demanded recovery of the spectrum and lost revenue. However, the party has not yet brought the new scam into the ambit of its demand for a JPC into corruption issues. Quoting media reports, Sitharaman said the private company has got 70 MHz of the spectrum space for just Rs 1,000 crore. The report had put the value of the loss at Rs 2 lakh crore. Ms Sitharaman also pointed out that the quantum of spectrum in the case of 2G spectrum was just 4.4 MHz. Alleging that the allocation was done very quietly in the private domain, she said Devas gets custom-made satellites and transponders.
The Left parties too termed the S-band spectrum issue as "very serious" and sought an investigation. "This is a new issue. ISRO is under the Department of Space which is under the prime minister. This is also a new scam," CPM polit bureau member Sitaram Yechury alleged.
CPI's D Raja said the revelations have added a new dimension to the 2G spectrum scam. "ISRO is directly under the control of Department of Space headed by the prime minister. It is very serious as ISRO deals with space and it has implications on our security," he said.
RSP's Abani Roy said the Left will seek inclusion of the new scam in the ambit of the JPC.
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