New Delhi: The Cabinet Committee has approved nine structural reforms and five process reforms for the telecom sector, said Minister for Communications, Ashwini Vaishnaw.
The union minister said that these reforms will change the framework of the entire telecom sector. “They will deepen and broaden the industry,” the minister added.
AGR issue resolved
The Cabinet Committee meeting, chaired by Prime Minister Narendra Modi, has decided to rationalise the definition of adjusted gross revenue (AGR), a demand that has been put forward by telecom companies for years now.
Vaishnaw said that all non-telecom revenue will be taken out of AGR.
PM took a bold decision over AGR (adjusted gross revenue) today. A decision has been taken to rationalise the definition of AGR. All non-telecom revenue will be taken out of AGR: Ashwini Vaishnaw, Minister for Communications pic.twitter.com/K6ONqNyZ9I
— ANI (@ANI) September 15, 2021
“There was a regime of heavy interest, penalty & interest on penalty on payment of license fees, spectrum user charges & all kinds of charges. It has been rationalised today. Annual compounding (of interest) will be done instead of monthly compounding,” he added.
The government has also offered an interest rate of MCLR + 2% to the telecom sector players, besides completely scrapping the penalties. The minister believes that the new reforms will pave way for large-scale investments in the telecom sector. Also Read: Zomato, Swiggy orders may attract GST soon: Here’s how food deliveries could burn a hole in your pocket
“Investment means employment – more the investment, more the employment,” Vaishnaw said. Also Read: Cabinet approves Rs 26,000 crore PLI scheme to bolster auto sector, local manufacturing