Govt responds to telco SOS, okays 4-year moratorium on AGR dues payment

The government has always maintained the telecom sector should not become a duopoly and at the same time the relief measures should not be given to one company

In a shot in the arm for the telecom industry, the Union Cabinet on Wednesday approved measures including a four-year moratorium on spectrum-related payments.

The relief package is expected to give a boost to the current players, besides attracting international investment. To encourage investment, 100 per cent foreign direct investment (FDI) under the automatic route has been permitted in the telecom sector, with all safeguards.

Telecom Minister Ashwini Vaishnaw said these structural reforms would change the framework of the industry.

The measures, which would be applicable for the telecom service providers, would provide relief by easing liquidity and cash flows and help banks