The row between Datacom and Dhoots (of Videocon Group) has finally ended with Mahendra Nahata agreeing to sell his stake (36%) to Dhoots (valued at $300mn).
Dhoots family owns 64% stake in Datacom, which has licenses for all circles except Punjab (more)
3G Auction Price to be hiked
3G Auction in India has become a national drama and the latest script says govt. is willing to hike the auction price from Rs. 2,020 crore to Rs. 3,540 crore.
The ‘core idea’ behind this hike is to give away enough incentive to finance ministry to not block the auction (earlier, there was a tussle between finance ministry and DoT over the reserve price).
Also, the total number of players who will be allotted 3G spectrum will be raised from 5 to about 7 or 8 per circle.
“The DoT’s logic behind the Rs 3,540 crore figure is that it is between the Rs 2,020 crore suggested by the DoT and the and the Rs 4,040 crore demanded by the finance Ministry. The DoT has arrived at this figure (Rs 3,540 crore) by doubling the reserve price for Delhi, Mumbai and category A circles and increasing it 1.5 times for Kolkata and category B circles retaining the current base price for category C circles, according to a top executive in the communications ministry.”- source