The proposal is being discussed at the highest levels, including the Ministry of Finance, the Department of Telecommunications, and the Cabinet Secretariat.
New Delhi: The Modi government is all set to take a very important step for the telecom sector. According to the reports, the Centre may provide significant relief to telecom companies on AGR dues. This will benefit the debt-ridden Vodafone Idea the most. Following the 2019 Supreme Court order, telecom companies like Vodafone Idea and Bharti Airtel owe substantial amounts to the government, which include huge interest and penalties.
According to NBT report quoting sources, the Centre is also mulling a proposal to waive 50 percent of the interest and 100 percent of the penalties, including the interest on penalties. If implemented, this could mark a significant turning point for the telecom business in India. Additionally, it could challenge the dominance of the two major private companies in the telecom sector.
The report further revealed that if this proposal gets approved, telecom companies will receive financial relief of over Rs 1 lakh crore. Vodafone Idea stands to benefit the most from this, as the company owes the government thousands of crores. Under the proposed relief, Vodafone Idea’s AGR dues could be reduced by more than Rs 52,000 crore.
Bharti Airtel may get relief worth approximately Rs 38,000 crore, while Tata Teleservices could receive relief of ₹14,000 crore. Reliance Jio, however, has no AGR dues. Tata Tele no longer offers retail services but focuses on enterprise mobility services.
Announcement Likely in Budget
The proposal is being discussed at the highest levels, including the Ministry of Finance, the Department of Telecommunications, and the Cabinet Secretariat. The government is working to announce this measure in the Budget on February 1, according to the reports.
