The auctions of 3G spectrum — airwaves that enable faster data download and video streaming on mobile phones — will now be delayed. The government will form an empowered group of ministers (eGoM) to decide the reserve price for the auctions and the number of slots to be offered per circle.

Sources said the eGoM would be headed by finance minister Pranab Mukherjee, with communications and information technology minister A Raja, home minister P Chidambaram, defence minister AK Antony and human resource development minister Kapil Sibal as its members. Sibal’s presence in the group is to provide legal inputs. A formal order for constituting the eGoM is expected any time.

Earlier, the department of telecommunications (DoT) and the finance ministry were hoping that the matter would be decided by the Cabinet. If that had happened, the auctions would take place in August. Industry sources have said that it takes operators around six months to roll out a 3G network once the spectrum is allocated. With the matter now headed for eGoM deliberations, auctions are sure to be delayed. Officials, however, said the projected revenues of Rs 25,000-30,000 crore from the auctions might find a mention in the Budget.

Though there was a consensus between the DoT and the finance ministry on a reserve price of Rs 3,510 crore and five slots per circle in the auctions, Prime Minister Manmohan Singh wanted an eGoM to thoroughly examine the matter first and then be brought to the Cabinet for discussions.

Early this year too, when the matter was discussed in the Cabinet, there were wide differences of opinions, which had led the government to form a GoM. However, with a new government coming to office, the GoM lapsed.

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