Union Cabinet Likely To Take Up Proposed Relief Package For Telecom Sector Today

In what could come as a big breather for the stressed and cash-strapped telecom player Vodafone Idea (Vi), the Union Cabinet headed by Prime Minister (PM) Narendra Modi is likely to take up the Department of Telecommunications (DoT)’s proposal of offering a relief package to the telecom industry today (8 September), reports Financial Express.

It should be noted though that even though Vi has been at the forefront to ask for Government support, the package is unlikely to be a tailor-made solution to address its concerns. The package will be for the entire industry.

It should meanwhile be noted that even though the exact components of the proposed relief package is not known as of yet, the likelihood is that it would comprise of reduction in licence fees, spectrum usage charges, clearer definition of adjusted gross revenue and extension of the moratorium on deferred spectrum instalment by another two years.

Liberalisation of foreign direct investment norms from a security angle and doing away with the need of furnishing bank guarantees may also be on the cards.