Wednesday, September 29, 2021
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Telcos Get 4-Year Moratorium On Spectrum Dues In Huge Relief

Union Cupboard has permitted moratorium plan for money strapped telecom corporations

The Union Cupboard on Wednesday cleared a reduction bundle for the burdened telecom sector which entails leisure to telecom corporations on cost of their lengthy excellent dues, together with a four-year moratorium on spectrum installment which is due in April 2022.

The bundle is aimed toward giving reduction to corporations like Vodafone Concept, that owe an enormous quantity to the federal government in statutory dues, sources mentioned.

The reduction bundle cleared by the Cupboard, consists of a part the place telecom corporations could get an choice to convert curiosity on their spectrum dues amounting to four-year moratorium, into authorities fairness.

The bundle may sign an answer to the lengthy standing monetary crunch being confronted by telecom corporations and their incapacity to pay dues price thousand of crores of rupees by way of spectrum charges, to the federal government.

Sources mentioned that with the assistance of the moratorium route, the adjusted gross income (AGR) may very well be rejigged and spectrum utilization fees could also be decreased.

The choice by the Cupboard has come simply weeks after Kumar Mangalam Birla resigned as chairman of the money starved Vodafone Concept.

The corporate had lengthy been in search of authorities’s intervention by way of bailing it out financially.

Even Sunil Bharti Mittal, chairman of Airtel, the nation’s second largest telecom firm, had sought authorities’s assist.

He had mentioned {that a} main chunk of the telecom trade’s revenues goes in paying authorities taxes.

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