Cabinet approves proposal for mitigating financial stress being faced by Telecom Services Sector

New Delhi [India], Nov 20 (ANI): The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the proposal for Mitigating financial stress being faced by the Telecom Services Sector.

Now, 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 and 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 concerned spectrum, will, however, be charged so that NPV is protected," an official release from Cabinet said.

"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. The improved financial health of TSPs will facilitate maintenance of the quality of services to consumer," it said.

According to the 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 Minister of Communications," it said. (ANI)