New Delhi: The telecommunications sector, especially the idea of Vodafone, is likely to relieve from the government – maybe at the beginning of Wednesday – by anticipating the package that can include levy cuts that the industry pays, regardless of the definition of soft income (adjustable gross income, or AGR) which will reduce Total load.
The Union Cabinet is scheduled to discuss the steps of relief to industrial players, including Airtel and Reliance Jio.
“If approved, the package may end by freeing thousands of crores of rupees for telecommunications players.
The government is serious about its intention to keep the industry healthy and have a healthy competition so that progress can be made to new technology such as 5G during the coming period,” said the source to Ti.
On the card is a reduction of 2 percent-percentages in the cost of licenses paid by telecommunications to the government, which is currently pegged at 8%.
This will be in line with the recommendations made by the Trai regulator.
“Other large reliefs can re-calibrate the AGR definition, which is used to calculate license fees (LF) and the cost of using spectrum (SUC).
The government can enable the company to exclude their non-telecommunication revenue from AGR calculations, which will effectively help them reduce Payment of LF and SUC to FECECEQUER, “said the source.
The government can also provide an extended holiday industry about the spectrum payment outside the two-year moratorium that players have been enjoyed.
While financial misery on the idea of Vodafone seems to be a direct trigger behind the Urgency of the Telecommunications Department to approve a bailout, analysts say that “Reliance Leader Market Jio and Bharti Airtel Sanggama will be a big enhancer” from every government support.
“While weak players like Vodafone ideas will breathe space to place their homes and compile a resurrection strategy with roping on investors, stronger players will get a big boost with tax pieces and other help steps.
Their operations are even stronger and more stable And strong, “An analyst, who suggested several telecommunications companies, said.
The main source said Telecommunication Secretary Anshu Prakash and senior officials from the Department of Telecommunications had made a presentation at the Prime Minister’s office (PMO), in front of preparing a proposal for the cabinet.
“The Telecommunications Ministry has worked overtime to prepare the package.
Many officers have worked late at night because the government made urgent steps to help the industry out of financial chaos,” said the source.
Cabinet to discuss the bailout package for Telecom today
