Telecom Minister Ashwini Vaishnav said that a four-year moratorium has been given for the dues on the telecom sector. Apart from this, 100% FDI has been approved, as well as the method of calculation of AGR will be changed. This will greatly improve the condition of the companies.
Government will change the rules regarding AGR calculation- Telecom Minister Ashwini Vaishnav.
The government has made many big announcements for the telecom sector today. It is believed that after today’s announcements, the development regarding 5G will accelerate, at least three companies will remain in the telecom sector and in the coming times, due to improvement in this ecosystem, the way for foreign investment will open. What are the reliefs given by the government to the telecom sector, let us know the opinion of the Telecom Minister about it.
Regarding today’s announcement, Telecom Minister Ashwini Vaishnav said in a conversation with CNBC Awaaz that the country is looking towards 5G technology. If it is to be implemented in the whole country, then at this time there is a need for massive investment on technology and infrastructure. If the telecom sector would have to spend so much, then it was necessary to have a better cashflow system of the industry. Today’s reforms are a step in this direction.
Government’s job is not to run a company
He said that the judgment of the Supreme Court should remain in force, there should be no cut in the revenue of the government and the industry should also get relief, keeping these three things in mind, all the decisions have been taken. Regarding buying equity in telecom companies, the Telecom Minister said that the government’s job is not to run the companies. Our sole aim is to improve the financial condition of telecom companies. Therefore, the moratorium has been announced for four years. However, interest liability will be there during this period.
4-year moratorium on arrears
Under the relief package, the government has announced a four-year moratorium for AGR dues. Bharti Airtel, Vodafone Idea and Reliance Jio owe the Telecom Department about 92000 crores. This is in the form of license fee, while 41 thousand crores is in the form of spectrum usage fee.
There will be a big improvement in AGR calculation
The government will change the rules regarding AGR calculation. Non-telecom revenue will be kept out of this. The detailed guideline regarding this will be issued in the next few days. Apart from this, annual compounding will be started for spectrum charges. Currently it is monthly compounding. The interest rate has been fixed at MCLR + 2 percent.
Spectrum regulation eased
Calculation of spectrum user charge will now be compounded annually. If not needed, it can be surrendered and can also be shared with another company. The government will release the calendar regarding spectrum auction, as well as the mobile tower set-up process will also be simplified.
100% FDI allowed for liquidity
To increase liquidity, 100% FDI has also been approved. At present it was 49 per cent. Its new investments will come and infrastructure development will improve. Also new employment opportunities will be created. Vodafone Idea seems to be getting the most from today’s announcements.
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