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Government to Roll Out Rescue Package for Stressed Telcos: Report

HighlightsThe authorities would possibly slash the curiosity on license chargesTelecom operators must pay a cumulative quantity of Rs 1.47 lakh croreVodafone Idea is probably the most affected one among Age duesThe Telecom Industry in India has been going through huge monetary misery because the telco giants are struggling to pay their AGR dues. Earlier, the federal government directed all of the telcos to pay their AGR dues with none future delays. Telecom operators resembling Vodafone Idea, Bharti Airtel and different harassed telcos have simply paid Rs 26,000 crore in the direction of AGR funds within the type of ad-hoc fee and buffer quantity. However, the present complete AGR dues of Telcos stands at Rs 1.47 lakh crore which must be clear earlier than the ultimate listening to scheduled on March 17 by the Supreme Court. To assist the distressed telcos and preserve the spine of the telecom trade, the federal government is planning to roll out a aid bundle which is able to supply staggered fee mechanism for default AGR dues together with aid measure in license charges which might revive the telecom trade from monetary burden and liabilities.Rescue Package will Relief the Stressed TelcosAs per a Times Now report, Union Cabinet would possibly approve the rescue bundle for harassed telcos which would come with a staggered fee schedule. Also, a whiffle fee schedule will assist the telco giants to clear off their AGR dues with none added trouble. However, telcos would possibly have to pay curiosity on the whiffle fee mechanism.As of license charges, the federal government would possibly comply with the suggestions by Trai and decrease the rate of interest, which at the moment stands at 8%. The authorities may additionally work on the self-assessed quantity by telcos as there’s a huge 3 times distinction between the AGR dues talked about by DoT and telco giants.Telcos Self-assessed Dues Creates Tension for the GovernmentAs per DoT, Vodafone Idea and Bharti Airtel must pay Rs 53,000 crore and Rs 35,000 crore respectively in the direction of AGR dues. However, as per the self-estimation, Vodafone Idea has marked that their self-assessed AGR dues stand at Rs 23,000 crore out of which Rs 7,000 crore is the principal quantity. Whereas, Bharti Airtel has marked that their self-assessed AGR dues is not going to cross Rs 18,000 crore. Till date, Vodafone Idea and Bharti Airtel have paid Rs 3,500 crore and 18,004 crores to DoT in the direction of AGR dues.

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