The Union Cabinet has approved 9 structural reforms and 5 procedure reforms for the telecom sector, geared toward giving comfort to businesses along with Vodafone Idea (Vi) that must pay thousands of crores in unprovisioned past statutory dues.
- Union Cabinet approved Rs 26,058 crore PLI scheme for auto, auto-components, and drone industry.
- Cabinet allowed 100% FDI in the telecom sector with safeguards.
- Cabinet approved a 4-yr moratorium on payment of statutory dues by telecom companies; telecom companies to pay interest on moratorium period.
- Cabinet approved 9 structural reforms; spectrum user charges rationalized.
- Cabinet rationalized AGR definition, excludes non-telecom revenue of telcos from payment of statutory levies
- Telecom Minister says spectrum auction to be held in last quarter of the financial year.
The huge set of measures proposed to entail reforms for the unwell zone by way of granting a moratorium on unpaid dues, redefining adjusted gross sales (AGR) prospectively, and reduce in Spectrum Usage Charges.
Telecom Minister Ashwini Vaishnaw stated non-telecom sales might be taken out of AGR. “PM took an ambitious choice over AGR (adjusted gross sales) today. A choice has been taken to rationalize the definition of AGR,” he instructed the media after the Cabinet meeting.
The regime of penalty and interest on diverse license charges and expenses has been rationalized with the penalty being eliminated absolutely and interest been reduced.
The Union Cabinet has additionally accredited 100% Foreign Direct Investment (FDI) via automatic route withinside the telecomFuture spectrum auctions might be for 30 years, as opposed to the present 20 years. The Ministry may even permit businesses to give up spectrum after paying a fixed rate in case of alternate in the commercial enterprise environment. Spectrum sharing has been allowed absolutely.