Big boost for telecom players! Cabinet approves 4-year moratorium on AGR dues, 100% FDI

Telecom Minister Ashwini Vaishnav said nine structural reforms for the telecom sector were approved.

New Delhi: In big bang reforms, the Union Cabinet on Wednesday approved a relief package for the telecom sector that includes a four-year moratorium on payment of statutory dues by telecom companies as well as allowing 100 per cent foreign investment through the automatic route.

Briefing reporters on the decisions taken by the Cabinet, Telecom Minister Ashwini Vaishnav said nine structural reforms for the telecom sector were approved.

The definition of AGR, which had been a major reason for the stress in the sector, has been rationalised by excluding non-telecom revenue of telecom companies.