The Department of Telecommunications (DoT) has sharply lowered the spectrum auction revenue target for FY24 to a modest Rs 500 crore from Rs 5,000 crore estimated earlier, officials aware of the details told Economic Times.

The department, though, still expects to generate Rs85,000 crore in revenue receipts this fiscal, the officials said.

They added that the upcoming auction, which the DoT is looking to hold in March, will only draw a few bids from Bharti Airtel and Vodafone Idea (Vi) for renewing their airwaves, and the total sale could fetch around Rs 2,000-Rs 3,000 crores, of the nearly Rs1 lakh crore worth of airwaves that would be up for sale. This would mark a sharp decline from the record Rs 1.5 lakh crore that the government raked in from the last 5G auction in August 2022.

“While spectrum worth over Rs 97,000 crore will be up for sale, the operators may not bid much as 5G requirements have been fulfilled for the time being. The incumbent telcos would like to renew their existing spectrum holdings,” an official said on condition of anonymity.