This refers to the edit “A sensible last act” (October 1). The government must understand that the Supreme Court’s response to the presidential reference on 2G spectrum allocation is more concerned with the equal distribution of natural resources, than the maximisation of revenue per se. In a democracy, citizens are the owners of a country’s natural resources and, therefore, it is only logical that the benefits of their use should percolate to all. In the case of 2G spectrum, the low allocation costs not only benefited the average consumer by way of better communication at cheaper rates, but also ensured better coverage. This was possible because the telecommunications sector was open and highly competitive. But in the case of coal allocations, the benefits, say, in the form of cheaper electricity were not passed on to the consumer. Instead the beneficiaries managed to make “windfall profits” by selling coal in the open market at commercial rates. Needless to say such “windfall profits” did not reach the consumer by way of cheaper goods or better social infrastructure. The government should, therefore, study the impact of natural resources before deciding on the most suitable route for their distribution, through auction or otherwise.
V Sridhar Kolkata
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