Auctions,options

How to allocate natural resources is a policy decision depending on a range of factors as was discussed in the report of the Ashok Chawla panel on the subject. For example,it called for a national law on water,treating it as a common resource and legislating its allocation and pricing; e-auctions for land similar to the exercise undertaken by the National Textiles Corporation to sell properties in Mumbai. Alienation of natural resources by the state depends on,among other factors,the nature of the resource whether it is limited or regenerative; on the priority of the policy allocation of public land for hospital,a university or for low-cost housing may need the government to lay down clear-cut principles; and also on the appetite of risk for market participants. Moreover,auctions work better when markets are more matured and developed. In coal,for instance,the market is still dominated by a single state-owned player and there is no regulator.

The telecom market has evolved rapidly in India and certainly there is an urgent need to move to market-based principles for spectrum allocation. In fact,time is ripe in India to allow trading of spectrum to address situations of shortage despite utilisation being sub-optimal. But,in some other sectors,auctions may have limited appeal. So the apex courts sweeping statement that first come first served or any other method for allocation of scarce natural resources is likely to be misused misses the point. Price and purse exchequer are not the only two factors that determine policy which has to be transparent and rule-based.

Curated For You

You have not even scratched the surface: Mahesh Bhatt recalls advising Alia to learn from Meryl Streep, shares thoughts on her career and parenting

Dhurandhar Box Office Worldwide Collection Day 21 Update: Ranveer Singh film earns Rs 1006 cr worldwide, crosses Rs 14 cr mark on Friday

India Women vs Sri Lanka Women 3rd T20I: Shafali Vermas superb 79 powers India to 3-0 series lead