- NET Web Desk
On Wednesday, September 15, the Union Cabinet has approved a relief package for the country’s bankrupt telecom sectors.
The package has also stated about several structural reforms to strengthen the sector.
According to reports, nine structural reforms and five process reforms has been approved for the sector.
The relief package aims to give some relief to companies such as Vodafone Idea that have to pay thousands of crores in unprovisioned past statutory dues.
Besides, the new package will allow companies to surrender spectrum after paying a fixed charge in case of change in business environment.
The cabinet has also approved 100% foreign direct investment through automatic route in the telecom sector.
It has also approved four-year moratorium for dues of telecom service providers.
However, penalty and interest regime on various license fees and charges has been rationalised with penalty being removed completely and interest been reduced.
Future spectrum auctions will be for 30 years, as against the present 20 years.
The reforms are applicable from October 1 and none of them are with retrospective effect, said Railways, Communications and Electronics & IT Minister, Ashwini Vaishnaw.
“There will be further reforms when 5G spectrum is auctioned,” he added.