Sumary of 4-year relief on AGR dues: Cabinet’s big bang telecom reforms:
- NEW DELHI: In a much-needed relief for the cash-strapped telecom sector, the Union Cabinet on Wednesday approved a 4 year moratorium period on dues and rationalised the definition of adjusted gross revenue (AGR).
- Briefing the media after the Union Cabinet meeting, telecom minister Ashwani Vaishnaw said that the reforms will change the framework of the entire telecom sector and broaden the industry.
- The move comes as a relief for debt-ridden Vodafone Idea which has already paid the government Rs 7,854 crore ($1.07 billion) in telecoms dues, but still owes roughly Rs 50,000 crore.
- In September last year, the Supreme Court had granted 10 years to the telecom companies to clear their AGR dues of around Rs 1.43 lakh crore to the Centre.