Prime Minister Manmohan Singh’s decision to directly look into the problems emerging after the Supreme Court’s verdict in the 2G case is definitely a welcome step, although this may not be an easy task to achieve. This is because there are numerous aspects of the Apex Court’s 2G verdict. The manner in which the court has cancelled all the 122 spectrum licences has an impact not only on the domestic and foreign companies but also thousands of employees working in these companies. The biggest challenge for the central government is to safeguard the investments by foreign companies and to convince the international business community that India continues to be a viable destination for them to make investments. This is for certain that the central government can convince the foreign companies only if they successfully handle the problems that have emerged in the wake of the Apex Court judgement. However the central government is still struggling on deciding whether to challenge the Supreme Court’s judgement or not? If they accept the Apex Court verdict, as they had initially hinted, then the biggest challenge for them would be to whether invite all the companies for participation in fresh bidding or only allow the companies whose licences are cancelled. In this context the foreign companies that collaborated with Indian companies for licences have requested that fresh allocations should safeguard their investments cannot be ignored.

Whether the government accepts or ignores the request by foreign companies, a fact cannot be denied that the foreign telecom companies cannot be held responsible for the excesses of former Telecom Minister A Raja. It is now the duty of the central government to safeguard the investments of the foreign companies. As this is a fact that foreign companies collaborated with the Indian companies in full faith of the central government. The government may now hold A Raja solely responsible for all the excesses in the spectrum allocation and do away with their own duty. However they are not in a position to state that the government is not responsible for the problems being faced by the foreign telecom companies. Apart from making fresh allocation of spectrum licences the central government has to delineate clear-cut policies on various issues so as to restore and enhance the confidence of domestic and international companies. This is even more necessary because the domestic and international business community is already skeptical of central government’s indecision and lack of clarity in policies. If they do not take steps for making the atmosphere more congenial, they will harm future prospects for foreign investments in the country which will further enhance the challenges for the Indian economy.