Lagatar24 Desk
The Union Cabinet on Wednesday approved a relief package for the cash-strapped telecom sector, along with several structural reforms to strengthen the sector. All those who will avail of the moratorium will have to pay some interest, Telecom Minister Ashwini Vaishnaw announced. The moratorium will start from October 1, the Cabinet said.
Briefing the meeting after the union cabinet meeting, Minister Ashwini said that 100 percent foreign direct investment (FDI) will be allowed in the sector.
“The reforms are deep and broad. They are structural. These reforms will bring in change today, tomorrow and in the future. I do not like to put a number on the package as it is revenue-neutral for the government,” the minister said. The government’s revenue will not be impacted by the moratorium, the minister said.
The move comes six weeks after Kumar Mangalam Birla resigned from the chairman post of Vodafone Idea Limited on August 4. Vodafone, which was created from the merger of British telecom giant Vodafone’s India unit and Birla’s Idea Cellular Ltd, has already paid the government ?7,854 crore in telecom dues but still owes roughly ?50,399.63 crore.
Meanwhile, Bharti Airtel has paid dues of ?18,000 crore and still owes ?25,976 crore to the government.
Overall, the telecom relief package is likely to outline reforms for the sector by way of granting a moratorium on unpaid dues, redefining AGR (Adjusted Gross Revenue) prospectively and cutting Spectrum Usage Charges, a source said to PTI.
