New Delhi: The Prime Minister's Office today denied media reports alleging that the government had incurred losses in allocation of S-band spectrum, saying no decision has been taken on the issue and hence charges of revenue loss were without basis.
Prime Minister Manmohan Singh. The Opposition had demanded a clarification from the Prime Minister on the issue and immediate recovery of the lost revenue along with a thorough inquiry into the matter.
A statement from the PMO spokesperson stated that the office had seen media reports alleging loss of government revenue in a contract entered into by ANTRIX (the commercial arm of Indian Space Research Organisation) and Devas Multimedia Private Limited due to lease of space segment capacity which would use S-Band spectrum.
"The CAG's office and Department of Space have already issued statements stating the factual position on the matter. It is further clarified that no decision has been taken by the government to allocate space segment using S-Band spectrum to ANTRIX or Devas. Hence, the question of revenue loss does not arise and any such reports are without basis in fact," the PMO statement said.
Media reports had stated that the Department of Space, which comes directly under the Prime Minister, had allocated 70 MHz of S-Band spectrum to Devas Multimedia for Rs 1,000 crore. The actual value of this was estimated to be around Rs 2 lakh crore, the reports claimed.
The Opposition had demanded a clarification from the Prime Minister on the issue and immediate recovery of the lost revenue along with a thorough inquiry into the matter.
BJP had alleged that the allocation was done quietly and without bringing the issue into the public domain.
Estimated loss is valued at Rs 2 lakh crore, greater than the 2G scam (1.76 lakh cr)
ISRO's new 'satellite' called 'scam band'
Bangalore-based Indian Space Research Organisation, that is busy planning to send another satellite to the moon and take a shot at Mars, is now caught in an orbit of a scam that is of astronomical proposition.
In a season that has made scams highly infectious, the `virus' of scandals orbiting huge chunks of money has touched India's premier research organisation, once considered to be sanitised from the influence of politics or purse.
The latest scam involves ISRO's deal with a Bangalore-based company called Devas Multimedia Private Ltd. This company got the scarce S-band spectrum for 20 years for a pittance. The company, not surprisingly, is owned by M G Chandrasekhar, a former scientific secretary at ISRO. Deutsche Telekom is a minority equity stakeholder.
ISRO managed to hide the agreement entered into by the space agency's commercial arm Antrix Corporation Ltd and Devas for six long years until the Comptroller and Auditor General (CAG) smelt a rat and called for the files. The media then scooped it out into public space, forcing ISRO and the Prime Minister's Office scramble for an explanation.
PM Dr Manmohan Singh and former Science and Technology Minister (present Maharashtra CM) Prithviraj Chavan have to answer some tough questions
The estimated loss, according to The Hindu which exposed the deal, is a whopping Rs 2 lakh crore!! By comparison, the presumptive loss incurred in the allocation of 2G spectrum by the DoT, as estimated by the CAG, is Rs 1.76 lakh crore.
The new S-band scam looks likely to explode on the face of Prime Minister Manmohan Singh just days before the crucial Budget session of Parliament. ISRO comes directly under the PM. Also coming under the scanner would be the present Chief Minister of Maharashtra Prithviraj Chavan who was the Union Minister for Science and Technology.
The S-band spectrum was allocated without inviting competitive bids and organisational control systems were thrown to the winds, in this case, into outer space. The Prime Minister's Office, the Cabinet, and the Space Commission were not kept in the loop or properly informed about the contract details, including the underestimation of ISRO's costs.
Globally, this frequency band has been put up for money-spinning auction and has fetched governments billions of dollars. The ISRO spectrum is critical for providing mobile broadband services using 4G technologies such as WiMax and Long-Term Evolution.
Former ISRO chief Madhavan Nair, the man at the centre of the scam.
The S-band (political opponents of the Congress call it `scandal band') is a gold mine due to the enormous commercial value for high-speed, terrestrial mobile communications. In 2010, the Union government got nearly Rs. 67,719 crore from the auction of just 15 MHz of similar airwaves for 3G mobile services.
The man at the centre of the scam, the then ISRO chief Madhavan Nair refused to comment when reporters asked about the scam in Thiruvananthapuram.
But late Monday night, ISRO put out a weak explanation saying: "The agreement entered into by Antrix and Devas on January 28, 2005 is already under review by the Department of Space and the government will take whatever steps necessary to safeguard public interest. A decision on the matter is likely to be taken soon."
The questions: Why did it take six years for ISRO to wake up? Had the media not exposed the deal, would it not have gone further, causing enormous loss? Why did ISRO keep quiet despite objections raised by the Union Cabinet.
The scam involves ISRO’s deal with Devas Multimedia Private Ltd. which is owned by M G Chandrasekhar, a former scientific secretary at ISRO
What needs flagging here is that the Law Ministry had asked the Department of Space to nullify the deal between Antrix and Devas after the Department of Space had sought its view on the matter. Even the Space Commission in July 2010 had put its foot down and strongly objected to the deal. It went a step further recommending scrapping of the agreement between the two companies.
What is strange is that a Cabinet note had found something fishy and had asked ISRO to explain, but the space organisation sat over it and did not care to reply. This may have been deliberate, say sources.
According to the deal, ISRO was to launch two satellite developed by Devas Multimedia. In what looks like a trade-off, Devas was given access to 70 MHz of broadband spectrum in the 2500 MHz band.
Devas had also got trial spectrum from DoT claiming that it had developed a new technology. Sources say that the technology was not new and is in force in a few countries.
Bangalore-based Devas Multimedia is a start-up, founded in 2004, and headed by Dr. M.G. Chandrasekhar, former Scientific Secretary at ISRO. He was earlier Managing Director of the satellite radio company WorldSpace, which closed down in the face of stiff competition from FM radio services. The board of directors includes Kiran Karnik, a former President of Nasscom; Larry Babio, a former vice-chairman of Verizon, and Gary Parsons, a former Chairman of XM Sirius Satellite.
Source: Agencies & India Syndicate