New Delhi. In the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, 100 percent FDI (100% FDI in Telecom Sector) has been approved in the telecom sector, which has been facing the crisis of AGR dues for a long time. Apart from this, it was decided that 4 years moratorium facility will be given to telecom companies regarding spectrum charges and AGR dues. Telecom Minister Ashwini Vaishnav said that the cabinet has approved 9 structural reforms. Apart from this, 5 process reforms have been approved. Telecom companies have been given a major relief by providing a 4-year moratorium facility in respect of payment of adjusted gross revenue on spectrum transfer. Explain that there is a huge financial burden on Vodafone-Idea and Airtel due to AGR.
Companies were feeling heavy burden due to AGR
AGR is the usage and licensing fee charged by the Department of Telecommunications (DoT). The Department of Telecommunications has been demanding the dues of the last several years, which the telecom companies were reluctant to give. Many telecom companies were feeling the financial burden due to AGR. The central government has taken many big steps to provide relief to the telecom sector and consumers.
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All decisions of the center for the telecom sector in 10 points
1. The definition of AGR dues will be changed. Telecom companies were demanding this.
2. The monthly interest rate for telecom companies has now been made annually. Relief has been given on penalty.
3. Telecom companies will be able to take moratorium on dues. This facility will be available for up to 4 years. The companies choosing it will pay interest to the government.
4. 100% FDI has been allowed in the automatic route of the telecom sector.
5. Now there will be customer verification in digital format. Till now documents had to be submitted. Now verification can be done without hardcopy.
6. Paper Customer Acquisition Form (CAF) will be replaced with digital storage of data.
7. Customers will not need KYC again on switching from prepaid to postpaid.
8. There has also been a change in the rules for the installation of the tower. Now this work can be done on the basis of self declaration.
9. Spectrum auction will be conducted in the last quarter of every financial year.
Tenure of spectrum has been increased from 20 to 30 years in 10 auctions. Spectrum will be allowed to surrender after 10 years.
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