Fixing high reserve price for 2G spectrum auction that took place last week was a mistake, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said.

The government had fixed Rs 14,000 crore as the base price for the recently held 2G spectrum auction, which could only raise Rs 9,407 crore, against the government's target of Rs
40,000 crore.

A number of leading telecom companies did not take part in the bidding for the spectrum due to high base price. It is worth mentioning here that Ahluwalia was part of the empowered group of ministers (EGoM), which had set the base price.

Admitting the mistake, Ahluwalia said the government needed to reconsider the reserve price before going in for the next auction for the unsold spectrum.

Speaking to reporters on the sidelines of Indo-Japan conference on Wednesday, he said, "I myself raised the issue that it was a mistake to pitch the reserve price at a level close to that. I think in hindsight it is clear that the reserve price was too high."

Ahluwalia also revealed that the Telecom Regulatory Authority of India (TRAI) had suggested the reserve price at Rs 18,000 crore, but the EGoM lowered it to Rs 14,000 crore.

While bidders have been criticised the high reserve price since its announcement, this is the first time when a government functionary has accepted a mistake in decision making.