Cabinet briefing: 9 structural, 5 process reforms approved for telecom; telcos to get 4-year moratorium on AGR dues

Penalty removed in case of spectrum charges

In case of spectrum, there was a regime of heavy interest, penalty, interest on penalty on payment of license fees. Penalty has been completely removed; instead of monthly compounding of interest, annual compounding to be done.

Telcos to get 4-year moratorium on AGR dues

Moratorium to start from October 1. MCLR (Marginal Cost of Funds based Lending Rate) + 2 per cent interest to be paid by those who avail of moratorium. Adjusted Gross Revenue and spectrum dues all covered under the moratorium.   

Key Cabinet decisions for telecom sector

• AGR definition rationalised
• Spectrum/charges regime with interest and penalty rationalised.
• Annual compounding of Interest and penalty abolished
• 30-year spectrum auction fees instead of 20 years
• Spectrum sharing is free now
• 100 % FDI through automatic route in Telecom
• 300-400 Crore forms stuck in warehouses.
• All KYC to be digitised
• Auction calendar to be put in place
• Post paid to Prepaid for KYC not required
• A 1953 Customs notification has been amended which makes it easy for import of equipment
• 4G, 5G Core network technology to be designed in India and Manufactured in India
• Moratorium to start from 1 Oct
• AGR and spectrum dues all covered under moratorium

Nine reforms taken in telecom sector

Total nine structural reforms and five process reforms have been approved for the telecom sector. "These reforms will change the framework of the entire telecom sector," says Ashwini Vaishnaw.

AGR definition rationalised

Minister for Communications Ashwini Vaishnaw says Prime Minister Narendra took a bold decision over AGR, in which a decision to rationalise the definition of AGR has been taken. Now, all non-telecom revenue will be taken out of AGR, he said.

Big announcements for telecom sector

• Non-telecom revenue won't be included in AGR definition prospectively.
• 100% FDI in telecom via automatic route approved

AGR definition rationalised

AGR definition rationalised, non-telecom revenue not to be included in it, says Telecom Minister

Scheme for auto sector & drone industry

Provision of Rs 26,058 Crore for PLI Schemes for Auto, Auto component Industry and Drone Industry; Rs. 25,929 Crore for Auto sector and Rs 120 crore for Drone Industry.

PLI scheme approved in auto, drone industries

PLI scheme approved in auto, drone industry: Anurag Thakur

• Today, the govt has approved PLI scheme in the auto and drone industry
• Over Rs 26,058 cr allocated for both these sectors for the next five years
• Above Rs 25,000 cr allocated for the auto sector under this scheme  
• 120 crore for the drone sector

Cabinet briefing starts shortly