New Delhi:
In an exclusive interview to NDTV, Telecom Minister Kapil Sibal has said that the Cabinet was not aware of the details of a deal struck in 2005 that allowed a private company access to a whopping amount of premier S-band spectrum for a paltry amount.
The deal has embarrassed the government, particularly since the contract has not been cancelled even though it was deemed faulty by departments within the government nearly a year ago.
"The contract is not operational...isn't that as good as scrapped?" asked Mr Sibal.
He also said that the Cabinet was not aware of its details.
"Individual contracts don't come before the cabinet," said the minister, stating that what the Cabinet did sanction was merely the launch of two satellites.
In 2005, the commercial arm of ISRO, Antrix, signed a contract with Devas Multimedia, to build two satellites on which Devas would lease transponders in India. Bundled into the deal was 70 MHz of S-band spectrum which was priced at 1000 crores - a sweetheart deal.
Because ISRO reports directly to the Prime Minister's Office, the controversy - which erupted in the media this week - has been especially worrying for the government.
Mr Sibal refused to comment on whether ISRO had deliberately misled the Cabinet by not upfronting the basic details of the contract. He said a committee appointed yesterday to examine the deal will study the terms of the deal, the shareholding of the companies involved and other details.
NDTV reported yesterday that even though the government decided to cancel the deal with Devas in July last year, three meetings since then have been held between representatives of Devas and Antrix, the last as recently as earlier this month. Documents suggest that Antrix was continuing work on delivering its end of the deal.
In a statement yesterday, Devas concurred.
"Devas has never been informed by DOS/ISRO/Antrix at any time prior to February 8, 2011 that the Agreement was under review since December 8, 2009 and even to date we have received no official notices. On the contrary Devas was provided written confirmation that all required approvals had been obtained from the highest levels for giving effect to the Agreement and repeatedly assured that the delays in delivery of the satellite capacity were only on account of technical issues."
The deal has embarrassed the government, particularly since the contract has not been cancelled even though it was deemed faulty by departments within the government nearly a year ago.
"The contract is not operational...isn't that as good as scrapped?" asked Mr Sibal.
He also said that the Cabinet was not aware of its details.
"Individual contracts don't come before the cabinet," said the minister, stating that what the Cabinet did sanction was merely the launch of two satellites.
In 2005, the commercial arm of ISRO, Antrix, signed a contract with Devas Multimedia, to build two satellites on which Devas would lease transponders in India. Bundled into the deal was 70 MHz of S-band spectrum which was priced at 1000 crores - a sweetheart deal.
Because ISRO reports directly to the Prime Minister's Office, the controversy - which erupted in the media this week - has been especially worrying for the government.
Mr Sibal refused to comment on whether ISRO had deliberately misled the Cabinet by not upfronting the basic details of the contract. He said a committee appointed yesterday to examine the deal will study the terms of the deal, the shareholding of the companies involved and other details.
NDTV reported yesterday that even though the government decided to cancel the deal with Devas in July last year, three meetings since then have been held between representatives of Devas and Antrix, the last as recently as earlier this month. Documents suggest that Antrix was continuing work on delivering its end of the deal.
In a statement yesterday, Devas concurred.
"Devas has never been informed by DOS/ISRO/Antrix at any time prior to February 8, 2011 that the Agreement was under review since December 8, 2009 and even to date we have received no official notices. On the contrary Devas was provided written confirmation that all required approvals had been obtained from the highest levels for giving effect to the Agreement and repeatedly assured that the delays in delivery of the satellite capacity were only on account of technical issues."
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