After perusing through various documents and reports I have found that India currently has around 60MHz of 3G spectrum of which 30MHz will be made available for 3G services. Spectrum available in 1920-1980MHz paired with 2110-2170MHz.
This means 5 operators are likely to be accommodated for 3G services as one slot is reserved for BSNL/MTNL. However, DoT is allowing a single operator to bid for 2 blocks of 5MHz against the TRAI recommendations. In all likelihood this move by DoT is to favor Telcos who crossed over from CDMA to GSM. However, the winner will have to substantially overpay or use one of the dirty polyester prince’s tricks 😉
As far as the auction of this precious spectrum goes, new operators [Telcos without any services in India] can also bid for the same but they have to first make an initial deposit of Rs 1,650 crore for UASL license.