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Telcos seek help on ‘priority basis’
Why is it in the news?
- The telecom companies have sent an SOS to the government seeking measures to facilitate reduction of financial stress in the industry.
- The industry currnetly reeling under pressure to clear their adjusted gross revenue-related dues.
More in the news
- The industry body COAI highlighted that banks were currently unwilling to take any risk with regard to the telecom sector.
- They added that there was a need to give a clear message to banks that the government was there to support the sector.
- On AGR dues:
(1) The industry members requested that the government could adjust the GST credit due to the telcos from the government.
(2) The individual firms were stretching to make as much payment possible in a stressed financial situation.
(3) Following this, the payment of the balance amount may be allowed in a staggered manner.
(4) The government may consider granting loan equal to the AGR amount at 6% rate of interest so that the AGR liability may be discharged immediately.
- Other Demands of COAI:
(1) COAI reiterated its demand for reduction in licence fee, spectrum usage charges as well as rationalisation of universal service levy.
(2) The industry body has also pitched for implementation of floor price for telecom tariffs April 1, 2020 onwards.
Source
The Hindu