The Union Cabinet has approved the proposal for Mitigating financial stress being faced by the Telecom Services Sector as per the following:
Department of Telecommunication will give an option to the Telecom Service Providers (TSPs) to defer payment of the spectrum auction installments due for 2020-21 & 2021-22, either for one or both years. These deferred amounts bills be spread equally in the remaining installments to be paid by TSPs. Interest as stipulated while auctioning of the concerned spectrum will, however, be charged so that NPV is protected.
Deferment of spectrum auction installments will ease the cash outflow of the stressed TSPs and facilitate payment of statutory liabilities and interest on bank loans. Continued operation by TSPs will give a fillip to employment and economic growth. The improved financial health of TSPs will facilitate the maintenance of the quality of services to the consumer.
The decision for deferring spectrum payment installments for two years will be implemented within a fortnight. Amendment to the License shall be issued expeditiously with the approval of Hon’ble Minister of Communications.
Ministry of Communications
[Press Release dt. 20-11-2019]
[Source: PIB]