Relief package for teleco may provide 4-year moratorium on AGR

The Vi is also the most affected telcom comapny due to the AGR claims of the union government

The most awaited relief package for the telecom sector may give rise to a four years moratorium on the payment of Adjusted Gross Revenue (AGR).

 

As per to the sources the moratorium may also be applicable on varieties of payments.

 

If the relief package gets implemented, it would be most beneficial for debt-ridden major telecom company, Vodafone Idea (Vi), which is battling to continue as a going concern.

 

The central government has been in the discussion with several stakeholders including banks, for a package for the telecom sector amidst the worries of a possible duopoly in the domestic telecom sector if Vi shuts.

 

The Vi is also the most affected telcom comapny due to the AGR claims of the union government.

 

As per the official sources who said that the Department of Telecommunications (DoT) has proposed the several measures along with lowering the spectrum of usage charges (SUC) that has been a prevailing demand of the telecom service providers.

 

Some of the relief measures were anticipated to be approved on Wednesday by the Union Cabinet. Although, no decisions were taken on the same.

 

The sources further says that the central government is in the view that competition must prevail in the teleco and any chances of a duopoly should be avoided.

 

The Vi's former Chairman, Kumar Mangalam Birla met Ashwini Vaishnaw, Union Communications Minister, the last week on September 1.

 

Birla and Ashwini Vaishnaw had discussed about the health of the telecom sector and the immediate need for the central government intervention.

 

On August 4, the board of Vi had accepted the request of Kumar Mangalam Birla to step down as the Non-Executive Director and Non-Executive Chairman of the Board.

India Scanner News Network

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