Reeling beneath stress to clear their adjusted gross revenue-related dues, telecom corporations have despatched an SOS to the federal government in search of measures on a ‘priority basis’ to facilitate discount of monetary stress within the trade.
In a letter to numerous authorities departments, together with the Prime Minister’s Workplace, trade physique COAI highlighted that banks had been at the moment unwilling to take any danger with regard to the telecom sector and there was a necessity to provide a transparent message to banks that the federal government was there to assist the sector.
“The banks are constantly asking telcos to reduce their exposures by refusing to issue new bank guarantees or even to renew the bank guarantees,” COAI Director Basic Rajan Mathews mentioned, including that the requirement for monetary financial institution ensures (FBGs) to safe cost of licence payment needs to be finished away with.
“However, if DoT is still of the opinion that FBGs are still required, then it should at least be reduced to one quarter’s license fee.”
The letter written to Telecom Secretary Anshu Prakash has additionally been marked to the Telecom Minister, Finance Minister, Principal Secretary, PMO, Cupboard Secretary, DPIIT Secretary, DEA Secretary and Niti Aayog CEO.
On AGR dues, Mr. Mathews requested that as particular person corporations had been stretching to make as a lot cost potential in a careworn monetary scenario, the federal government may modify the GST credit score because of the telcos from the federal government. Following this, the cost of the stability quantity could also be allowed in a staggered method. “It is requested that a moratorium of 3 years be provided, as we expect that it will take at least that much time to recover the health of the sector, followed by a payment tenure of 15 years at a simple interest of 6%,” the trade physique mentioned.
Instead, Mr. Mathews mentioned the federal government might take into account granting mortgage equal to the AGR quantity at 6% charge of curiosity in order that the AGR legal responsibility could also be discharged instantly.
COAI additionally reiterated its demand for discount in licence payment, spectrum utilization fees in addition to rationalisation of common service levy.
The trade physique has additionally pitched for implementation of flooring value for telecom tariffs April 1, 2020 onwards. “Floor pricing is imperative to ensure the sector is sustainable, and in a position to bear the deferred spectrum and AGR dues, while continuing to invest in world class networks and services,” it mentioned.