No immediate relief for financially ailing Telecom Sector from government: Sources

The government is unlikely to reduce or waive Telcos on existing dues ie. AGR, interest, penalty and interest on the penalty that was upheld by Supreme Court in its September 2020 Judgment. 

New Delhi: There seems to be no immediate relief for the financially ailing Telecom Sector as the relief being planned by the government doesn't include short term measures. The only saving grace for the industry is the redefinition of Adjusted Gross Revenue (AGR). According to sources, once AGR is defined then only telecom activity-based revenue will come under AGR.

Government is unlikely to reduce or waive Telcos on existing dues ie. AGR, interest, penalty and interest on the penalty that was upheld by Supreme Court in its September 2020 Judgment. The proposed interest rate reduction and penalty removal on overdue will only be applicable for dues of future periods after a prospective date to be notified. 

Government is likely to defer dues for the next 4 years, but instalments will have to be paid after 5 years. The government is unlikely to extend 10 year period as ordered by the apex court, sources told Zee Media.