Cabinet approves moratorium of 4 years for telecom companies; 100% FDI allowed in Telecom Sector
In a major relief for the telecom sector, the Modi government has approved a relief package for the sector that includes a four-year moratorium on payment of statutory dues by telecom companies, along with 100 per cent foreign investment through the automatic route. permission is included.
Briefing reporters about the decisions taken by the cabinet, Telecom Minister Ashwini Vaishnav said that nine structural reforms were approved for the telecom sector. The definition of AGR, which was a major cause of stress in the sector, has been rationalized by excluding non-telecom revenues of telecom companies. AGR refers to the revenue which is considered for payment of statutory dues.
“The cabinet has approved a moratorium of 4 years on payment of statutory dues by telcos. Telcos to pay interest on the moratorium period,” the Telecom Minister said.
The minister said that “100 per cent foreign direct investment (foreign direct investment) in telecom through the automatic route was approved by the cabinet”.
He said the measures approved were a moratorium of four years on unpaid dues, AGR and spectrum dues.
These measures are expected to ease the cash flow issues being faced by some players in the industry. Today’s decision will also give a big relief to the debt-ridden Vodafone Idea. The firm has huge dues to several banks.
The Union Minister also informed that spectrum will be auctioned in the last quarter of the financial year.
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