The Indian government has dispended relief amount of almost Rs 42,000 crore to the telecom companies which are in huge debts.
Finance Minister Nirmala Sitharaman said that the Union Cabinet led by the Minister Narendra Modi has decided to give Bharti Airtel, Vodafone Idea Ltd, and Reliance Jio an option of availing a two-year postponement on the payments which were supposed to be done on the basis of yearly installments for the spectrum, that were bought in the auction.
With this move, the government will give Rs 42,000 crore relief to telecoms like Bharti Airtel, Vodafone Idea and Reliance Jio. It has been reported that the government will not intervene in the statutory payments delivered by the Supreme Court.
"In view of the current financial stress which is faced by major telecom service providers and pursuant to recommendation given by Committee of Secretaries, Cabinet has approved to defer receipt of the spectrum auction instalment due from the TSPs (Telecom Service Providers) for the years 2020-21 and 2021-22," Finance Minister said.
"As per the current policy, the telecom service providers will continue to securitise the next payable annual instalment by a financial bank guarentee of an amount equivalent to the instalment," she added.
"Continued operation by TSPs will give a fillip to employment and economic growth. Improved financial health of TSPs will facilitate maintenance of quality of services to consumer," read an official statement.
Finance Minister Nirmala Sitharaman said that the Union Cabinet led by the Minister Narendra Modi has decided to give Bharti Airtel, Vodafone Idea Ltd, and Reliance Jio an option of availing a two-year postponement on the payments which were supposed to be done on the basis of yearly installments for the spectrum, that were bought in the auction.
With this move, the government will give Rs 42,000 crore relief to telecoms like Bharti Airtel, Vodafone Idea and Reliance Jio. It has been reported that the government will not intervene in the statutory payments delivered by the Supreme Court.
"In view of the current financial stress which is faced by major telecom service providers and pursuant to recommendation given by Committee of Secretaries, Cabinet has approved to defer receipt of the spectrum auction instalment due from the TSPs (Telecom Service Providers) for the years 2020-21 and 2021-22," Finance Minister said.
"As per the current policy, the telecom service providers will continue to securitise the next payable annual instalment by a financial bank guarentee of an amount equivalent to the instalment," she added.
"Continued operation by TSPs will give a fillip to employment and economic growth. Improved financial health of TSPs will facilitate maintenance of quality of services to consumer," read an official statement.