Payment instalments for successful 3G bidders being considered

15 Oct 2008

India’s Economic Times is reporting that the government is considering relaxing existing auction guidelines for payment in order to ensure that the upcoming 3G auctions are not affected by the current economic crisis. Plans to introduce a staggered payment option for bidders is being considered in order to make it easier for potential winners of the auction process to pay, with proposals that successful bidders would only have to pay the reserve price upfront; the remainder would then be paid in instalments. The report quotes a government source familiar with the plans as noting, ‘The proposal is at an initial stage; specific dates may be fixed by the Department of Telecommunications (DoT) to evolve either a quarterly or a bi-annual payment mechanism over and above the minimum reserve price. The finance ministry will need to come on board before a decision is taken.’