New telecom bill may clarify on insolvency norms for stressed firms: Report

With Indian Telecommunication Bill, 2022, a spectrum will be held by a telco till it continues to pay the dues and provide the services. Once the service stops, the spectrum will go to the government

The proposed Indian Telecommunication Bill, 2022, is expected to introduce reforms that will make it easier to deal with insolvency of stressed assets, and mergers and acquisitions (M&A). According to a report by BusinessLine (BL), it will also enable the centre to waive off dues of stressed telcos. 

Under the current Insolvency and Bankruptcy Code (IBC) rules, it is unclear whether the spectrum owned by defaulting telecom operators belongs to the government or banks. 

With the new bill, according to BL, the ownership of such spectrum will go to the government. The Department of Telecommunications (DoT) had earlier stated that