Cabinet approves 4-year moratorium for telecos; 100% FDI allowed in telecom sector

0

Image Source : FREEPIK

Cabinet approves 4-year moratorium for telecos; 100% FDI allowed in telecom sector

In a huge 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 as well as allowing 100 per cent foreign investment through the automatic route.

Briefing reporters on the decisions taken by the Cabinet, Telecom Minister Ashwini Vaishnav said nine structural reforms for the telecom sector were approved. The definition of AGR, which had been a major reason for the stress in the sector, has been rationalised by excluding non-telecom revenue of telecom companies. AGR refers to revenues that are considered for payment of statutory dues.

The Minister said that “100 per cent FDI (Foreign Direct Investment) in telecom via the automatic route was approved by the Cabinet”.

Among the measures approved were a four-year moratorium on unpaid dues, AGR and spectrum dues, he said.

These measures are expected to ease the cash flow issues being faced by some players in the industry.

The decision will provide a huge relief to the debt-laden Vodafone Idea. The firm owes a huge huge amount to the government.

 

Latest Business News

FOLLOW US ON GOOGLE NEWS

 

Read original article here

Denial of responsibility! Samachar Central is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Comments
Loading...