NEW DELHI: Telecom companies may have to wait a little longer to get any significant relief from the government, as the telecom department is still awaiting clarifications sought from an inter-ministerial group ( IMG ) on some of its recommendations to help the financially stressed sector. In the interim, though, the government may take some steps on a piecemeal basis.“The IMG has given clarifications on some, but not all the aspects,” said a senior government official in the telecom ministry, asking not to be named. “Since some of the things haven’t been clarified, it (approving IMG’s recommendations on relief) may take a bit longer.”The inter-ministerial group was set up to recommend ways to improve the health of an industry grappling with Rs 5 lakh crore of debt, with some carriers having defaulted on payments to be made to the government for spectrum bought through auctions. The Telecom Commission has asked whether the period could be 12 or 14 years, instead of 16.The IMG had rejected the industry’s major demands for lowering licence fees and spectrum usage charge. Extension to the payment tenure and shifting the basis for interest payment on licence fees and spectrum usage charge to the marginal cost of fund-based lending rate from prime lending rate were termed as inadequate by several companies.

Source: Economic Times September 28, 2017 18:56 UTC