Telecom relief package likely to cost Rs 14,000 crore to govt in FY22

The government budgeted Rs 1.33 trillion as non-tax revenues from the telecom sector in 2020-21, but only Rs 34,000 crore could be realised

The government’s telecom package, announced on Wednesday and comprising a moratorium on spectrum charges and adjusted gross revenue (AGR) dues for four years, is likely to reduce non-tax revenues from the sector by around Rs 14,000 crore this fiscal year if companies opt for the offer.

Aditi Nayar, chief economist at ICRA, has assessed non-tax revenues of Rs 46,000 crore from the sector will be deferred per year for four years, starting from FY23. This comprises Rs 14,000 crore related to the moratorium on AGR and Rs 32,000 crore from the halt on spectrum dues, she said. The package comes