Cabinet approves proposal for mitigating financial stress facing TSPs

Speed Post News Network

New Delhi : The Union Cabinet chaired by PM Narendra Modi has approved the proposal for mitigating financial stress being faced by the Telecom Services Sector. The Department of Telecommunication will give an option to the Telecom Service Providers (TSPs) to defer payment of the spectrum auction instalments due for 2020-21 & 2021-22, either for one or both years.  These deferred amounts bill be spread equally in the remaining instalments to be paid by TSPs. Interest as stipulated while auctioning of the spectrum concerned will, however, be charged so that net present value (NPV) is protected.

The deferment of spectrum auction instalments will ease the cash outflow of the stressed TSPs and facilitate payment of statutory liabilities and interest on bank loans.  Continued operation by TSPs will give a fillip to employment and economic growth.  Improved financial health of TSPs will facilitate maintenance of quality of services to consumer, according to a PIB release.

The decision for deferring spectrum payment instalments for two years will be implemented within a fortnight.  Amendment to the License shall be issued expeditiously with the approval of Communications Minister.