Cabinet Approves 4 Year Moratorium on AGR Dues; Telecom Sector Granted 100% FDI
- Centre announces 4 year moratorium as relief package for telecom companies.
- 100 per cent FDI permitted for telecom firms.
- Automobile and Drone Industry issued a revised PIL Scheme.
In a meeting of the Union Cabinet headed by PM Modi, the panel approved a four-year moratorium on payment of the spectrum dues by telecom companies as a part of a relief package for companies strangled due to the pandemic.
The announcement was put forth by Telecom Minister Vaishnaw, following which he states that the govt had decided to allow 100 per cent foreign investment (FDI) in the sector. This decision by the centre would aid telecom firms like Vodafone Idea and Bharti Airtel to pay their unprovisioned past statutory dues of thousands of crores. Mr Vaishnaw also stated that the union had decided to rationalize Adjusted Gross Revenue, according to which the non-telecom revenue would be eradicated. He further spoke about the approval of nine structural reforms in the sector that would ease cash flow concerns faced by some firms in the sector.
Additionally, the cabinet also approved the revised production linked incentive (PLI scheme for the automobile industry. Last year in November the centre had reduced the PLI scheme to Rs 25,929 crore from Rs 57,042 crore.
Concluding the meeting it was informed that the auto, auto components and drone industries were approved of a revised PLI scheme as per which a provision of Ra 26,058 crore was announced, encompassing Rs 25,929 crore for the auto sector and Rs 120 crore for the drone industry.