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Big Picture: Telecom Sector Reforms
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The Union Cabinet approved a big-bang relief package for the stressed telecom sector that includes a four-year break for companies from paying statutory dues, permission to share scarce airwaves, change in the definition of revenue on which levies are paid and allowing 100 per cent foreign investment through the automatic route.
The measures, which aimed at providing relief to companies such as Vodafone Idea that have to pay thousands of crores in unprovisioned past statutory dues, also include the scrapping of spectrum usage charge (SUC) for airwaves acquired in future auctions.
It also provides telecom companies with an option to pay the interest amount arising due to the deferment of payment by way of equity.
In this edition of Big Picture, we analyze the recently announced telecom sector reforms.
Ajay Shankar, Former Secretary, GoI... ///
Subhomoy Bhattacharjee, Consulting Editor, Business Standard... ///
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