NEW DELHI: The Narendra Modi-headed Cabinet on Wednesday approved the recommendation of the Committee of Secretaries (CoS) on the relief to the stressed telecom sector, and allowed telcos a 2-year moratorium on spectrum-related dues.
"In view of the current fin stress faced by major telecom service providers and in pursuant of the recommendations by Committee of Secretaries, it is decided to defer receipts of spectrum auction installments due from the telecom service providers from the the years 2020-21 and 2021-2022," Finance Minister Nirmala Sitharaman Wednesday said.
The deferred amounts, according to Sitharaman would be equally spread over the remaining installments."These deferred amounts bill be spread equally in the remaining installments to be paid by telecom companies. Interest, as stipulated while auctioning the concerned spectrum, will, however, be charged so that NPV is protected, the government in a statement said.
However, telecom companies opting for a two-year deferred payment would have to furnish a bank guarantee.
Deferment of spectrum auction installments would ease the cash outflow of the stressed telcos and facilitate payment of statutory liabilities and interest on bank loans.
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