New Delhi: In a bid to assess the overall impact of Supreme Court judgement in the 2G spectrum allocation case leading to cancellation of 122 licences, Prime Minister Manmohan Singh on Saturday held a consultation meeting with his senior Cabinet colleagues and officials.

The meeting was attended by Finance Minister Pranab Mukherjee, Home Minister P Chidambaram, Telecom Minister Kapil Sibal and Law Minister Salman Khurshid. Attorney General G E Vahanvati and Telecom Secretary R Chandrashekhar were also present.

“The motive of the meeting was just to address the overall impact of the Apex Court’s decision on the telecom sector and frame a roadmap for fresh auctions of the spectrum licences,” said Sibal after the meeting.

As per the sources, the Department of Telecommunications (DoT) has given presentation about the implications and ramifications of the 2G verdict over the telecom sector and overall economy.

Notably, the experts claim that the 2G verdict can have a negative impact on the FDI flows and can hit the telecom sector badly. Besides this speculations of hike in tariff following high price of spectrums are also very high.

Meanwhile, as per the directives of the Supreme Court, the DoT has commenced the process for organising the bidding for fresh allocations of the cancelled licences.

According to sources, the Telecom Ministry is likely to send, within a week, letters to new operators for termination of their licences.

In this context, the Telecom Regulatory Authority of India (TRAI) has floated a pre-consultation paper seeking comments from stake-holders on guidelines for spectrum auction as directed by the Supreme Court.

The situation has become difficult with some foreign operators like Norwegian Telenor and Russian Sistema, whose licences have been cancelled, are putting pressure on the government, asking it to safeguard their investments.

Telenor, a majority shareholder in Uninor, claims to have invested over Rs 14,000 crore in Indian operations while Sistema, a majority joint venture partner in Shyam-Sistema, has pumped in over USD 2.5 billion (about Rs 12,000 crore).

Both are likely to participate in the forthcoming auction of 2G spectrum to continue their operations and secure investments.

Last week, the Supreme Court had cancelled 122 2G licences granted during the tenure of former telecom minister A Raja declaring it as "illegal" and blamed the government's flawed first-come-first served policy.