Union Cabinet Expected To Clear A Rescue Package For Telecom Sector This Week

In a crucial development for the flailing telecom sector in India, the Union Cabinet headed by Prime Minister (PM) Narendra Modi is expected to clear a much-awaited rescue package later this week, reports Times of India.

The package is expected to include staggered payment schedule for the outstanding adjusted gross revenue (AGR) dues which the telecom companies owe the Department of Telecommunications (DoT).

The package is also expected to reduce the licence fees from present eight per cent to bring it in line with the recommendations made by the Telecom Regulatory Authority of India (TRAI) earlier.

The staggered payment schedule may give companies more time to pay the remaining dues.

The rescue package is being prepared by top officials from NITI Aayog, Ministry of Finance and the DoT. It should be noted that the development comes merely days before the Supreme Court's final hearing on the matter of AGR dues which is scheduled to take place on 17 March.

Meanwhile, Airtel has said that it wishes to pay the dues well before the hearing, Vodafone Idea has made it clear that it will fail to make the payment if a relief package is not provided.