Presenting the interim budget for 2014, P Chidambaram, Minister of Finance has stated that the government is targeting revenues worth $6.27 billion from the telecom sector in 2014-15.

The revenue to be raised will include proceeds from the spectrum auction during the next financial year. The government plans to auction spectrum in three bands in this period. Following the conclusion of the third round of the spectrum auction, the government is expected to receive revenue worth $3 billion in the financial year ending March 31, 2014.

Further, the revenue target set by the government for 2014-15 include the recurring annual fees paid by the operators and a one-time fee levied as spectrum usage charges.

In the interim budget, the government has also restructured the excise duty imposed on mobile phones. The move is expected to           marginally increase the cost of mobile phones that are priced below Rs 2,000. The excise duty for all categories of mobile phones will be six per cent with Cenvat credit or one per cent without Cenvat credit.

However, the excise rates of one per cent as proposed in the budget has not been extended to mobile phone manufacturing operations set up within special economic zones and export oriented units, as the clearances by these units to the domestic tariff area are treated at par with physical imports into India.