The centre has cleared a reduction bundle for the embattled telecom sector, in a transfer to offer reduction to firms weighed down by big Adjusted Gross Revenue
(AGR) dues. The bundle would offer leisure to telecom firms on cost of their lengthy excellent dues, including a four-year moratorium on spectrum installment which is due in April 2022, and discontinuation of spectrum utilization expenses. The telecom firms might also get an choice to convert curiosity on their spectrum dues amounting to four-year moratorium, into fairness.
The reduction bundle will present reduction to India’s three main wi-fi carriers, i.e. Reliance Jio, Bharti Airtel and particularly Vodafone Idea. Vodafone Idea, which was created from the merger of British telecom large Vodafone’s India unit and Birla’s Idea Cellular, owes Rs 50,399.63 crore in statutory dues to the federal government.
The telecom sector was hit by the Supreme Court ruling final 12 months, making it necessary for Bharti Airtel and Vodafone Idea to pay their pending dues to the federal government. The telecom firms, including Bharti Airtel, Vodafone Idea and Reliance Communications, owed round Rs 92,000 crore to the federal government as license charge and Rs 41,000 crore as spectrum utilization charges, in keeping with the telecom division.
Earlier in 2016, the telecom sector noticed an upheaval with the entry of Jio into the market. With its free voice and cut-price knowledge plans, Jio pushed many rivals out of the market and led to the merger of Vodafone’s India unit and Birla’s Idea Cellular into Vodafone Idea.
Kumar Mangalam Birla, former chairman of Vodafone Idea, wrote to the cupboard secretary in July, providing his stake in Vodafone Idea to the federal government or any firm permitted by the federal government without cost. And on August 4, Mr Birla resigned because the chairman of Vodafone Idea.
Earlier this week, banks led by State Bank of India referred to as on the federal government to provide Vodafone Idea extra time to clear its tax dues.