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Govt panel constituted to look at relief package for telcos disbanded

In October, the government had constituted a CoS, headed by Cabinet Secretary Rajiv Gauba, to explore a financial bailout package for the telecom sector

BS Reporter 

Sharp reduction in capex and an increase in operating profit led to a 49% jump in operating free cash flows on a sequential basis

The committee of secretaries (CoS), constituted last month to explore a financial bailout package for the sector, has been disbanded, said a government source on Monday. On the issue of applicability of the Supreme Court's adjusted gross revenue (AGR) ruling on other service providers like ISPs, the source said while these cases were separate and such players were not party to the cases, they still have obligation to pay their statutory dues.

Asked if the CoS has been disbanded now, the source replied in affirmative. On whether a new inter-ministerial panel could be constituted for ironing out other outstanding issues, the source said, "No, it is a SC defined matter".

In October, the government had constituted a CoS, headed by Cabinet Secretary Rajiv Gauba, to explore a financial bailout package for the sector.

The panel was tasked to look at the demands of service providers for deferment of payments they had promised for the spectrum won through auction as well as consider lowering airwave usage charge. It had also been asked to consider lowering the obligation of operators for providing 5 per cent of their annual revenues for the Universal Service Obligation Fund (USOF).

First Published: Mon, November 25 2019. 23:07 IST
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