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In a major development, the Union Cabinet headed by Prime Minister (PM) Narendra Modi is likely to consider the much-awaited relief package for the stressed telecom sector today (15 September), reports Economic Times.
The relief package would entail several measures like a moratorium on the payment of spectrum dues by telecom firms for four years. Also, the companies could be given the option to convert the interest of their spectrum dues into government equity following the span of four years.
The measure would give the biggest breather to cash-strapped telecom player Vodafone Idea (Vi). The company has to pay about Rs 50,399.63 crore in statutory dues dating back over the past many years.
It should be noted that on 5 August, billionaire Kumar Mangalam Birla had also resigned from the post of company’s chairman.
The package is also likely to redefine the adjusted gross revenue (AGR) progressively to exclude non-telecom items and cut the spectrum usage charges. The measures are expected to help ease the cash flow issues being faced by some of the players in the industry.