Telecomm Reforms Package: Provide Financial Relief For Mobile Companies

As part of significant reforms announced for the telecom sector, the government has now written to telcos, including Bharti Airtel, Vodafone Idea and Reliance Jio, asking them to inform by October 29 whether they will opt for the four-year moratorium. The government has also given telcos 90 days to inform whether they want to opt for converting the interest amount related to the moratorium period into equity.

According to a letter seen by PTI-language, audited financial statements for the previous financial year (2020-21) can be submitted along with this option. The telecom department had sent separate letters to the companies on Friday, and these There may be slight variation at some places depending on the content and procedural modality mentioned in the letters.

It is noteworthy that the Union Cabinet had approved a major reform package for the telecom sector, which is facing pressure in the past. The package includes a four-year moratorium from payment of statutory dues, permission to share rare radio waves, change in the definition of gross adjusted revenue (AGR) and allow 100 per cent foreign direct investment through the automatic route.