IMG to meet again to discuss financial woes of telcos

The IMG has seven members, including officials from the DoT and the Finance Ministry

The inter-ministerial group (IMG), formed to address the financial stress in the telecom sector, will set to meet again to further discuss issues.

 

The IMG will try to finish its report before Sunday and place it before the Telecom Commission for approval.

 

The panel had reached consensus on increasing the tenure of spectrum payment, cutting interest rate and shifting of PLR (prime lending rate) into the MCLR (marginal cost of funds-based lending rate). It is yet to take a call on any reduction in Universal Service Obligation Fund (USOF) levy, which currently stands at 5 per cent of adjusted gross revenue.

 

The Telecom Commission, which is the highest decision making body of Department of Telecommunications (DoT) is likely to meet on September 1 to discuss the issues plaguing the sector.

 

“Extending the deferred payment schedule to 16 years, and converting the PLR (prime lending rate) into the MCLR (marginal cost of funds-based lending rate) are mostly finalised,” a source said.