Cabinet approves proposal for Mitigating financial stress being faced by the Telecom Services Sector
Posted On: 20 NOV 2019 10:37PM by PIB Delhi
The Union Cabinet chaired by Prime Minister Narendra Modi has approved the proposal for Mitigating financial stress being faced by the Telecom Services Sector as per the following:
Department of Telecommunication will give an option to the Telecom Service Providers (TSPs) to defer payment of the spectrum auction instalments due for 2020-21 & 2021-22, either for one or both years. These deferred amounts bill be spread equally in the remaining instalments to be paid by TSPs. Interest as stipulated while auctioning of the concerned spectrum will however be charged so that NPV is protected.
Deferment of spectrum auction instalments will ease the cash outflow of the stressed TSPs and facilitate payment of statutory liabilities and interest on bank loans. Continued operation by TSPs will give a fillip to employment and economic growth. Improved financial health of TSPs will facilitate maintenance of quality of services to consumer.
The decision for deferring spectrum payment instalments for two years will be implemented within a fortnight. Amendment to the License shall be issued expeditiously with the approval of Hon’ble Minister of Communications.