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Relief for telecom sector, Cabinet approves 4-year moratorium on AGR dues – Times of India


NEW DELHI: The Union Cupboard on Wednesday accredited a 4 12 months moratorium for the cash-strapped telecom sector and rationalised the definition of AGR.
The announcement comes as a giant aid to firms like Vodafone Concept which needed to pay hundreds of crores to the Centre in unprovisioned previous statutory dues.
Briefing the media after the Union Cupboard assembly, telecom minister Ashwani Vaishnaw mentioned that 100 per cent overseas direct funding (FDI) can be allowed within the sector.
In all, the Cupboard introduced 9 structural reforms and 5 course of reforms.
“These reforms will change the framework of the whole telecom sector. They may deepen and broaden the business,” the minister mentioned.
The aid package deal for telcos will assist the three main wi-fi carriers together with Mukesh Ambani’s Reliance Jio however particularly the embattled Vodafone Concept.
The transfer comes six weeks after billionaire Kumar Mangalam Birla resigned as chairman of beleaguered Vodafone Concept Ltd (VIL) on August 4.
Vodafone Concept has already paid the federal government Rs 7,854 crore ($1.07 billion) in telecoms dues, however nonetheless owes roughly Rs 50,000 crore.
The transfer comes six weeks after billionaire Kumar Mangalam Birla resigned as chairman of beleaguered Vodafone Concept Ltd (VIL) on August 4.
In September final 12 months, the Supreme Courtroom had granted 10 years to the telecom firms to clear their AGR dues of aorund Rs 1.43 lakh crore to the Centre.
The court docket had made it clear that the businesses need to pay the dues with out additional evaluate, with March 31, 2021 being the deadline for operators to pay the primary instalment.
Thereafter, it had directed the telecom companies to pay annual instalments on the finish of each monetary 12 months until 2031, falling which the businesses can be topic to penalty.
Vodafone, which has a web debt of Rs 1.91 lakh crore, has beforehand raised severe considerations about its capability to remain afloat with out authorities assist. The corporate’s non-executive chairman Okay M Birla stepped down final month.
In the meantime, Sunil Mittal-led Bharti Airtel has paid dues price Rs 18000 crore and nonetheless owes Rs 25,976 crore to the federal government.





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