The government is considering forgoing demand pertaining to one-time spectrum charges (OTSC) of around Rs 400 billion from telecom operators in an effort to support the financially stressed operators.
To this end, the government has filed an affidavit in the Supreme Court stating it wants to reconsider its appeal against a telecom tribunal ruling backing telcos’ argument that the OTSC should be levied prospectively.
The affidavit sought three weeks to inform the SC about the government’s decision to withdraw the cases against telcos. The timeframe would allow the central government to take an informed decision on whether or not to proceed with its set of appeals.
The government’s affidavit noted that the sector is experiencing financial stress, and companies are incurring losses despite steps taken by the government to offer relief.
Further, the government is considering settling ongoing legal cases with telcos through an out-of-court settlement process in an effort to reduce the litigation burden on the telecom industry as part of the next phase of telecom reforms.
Earlier in September 2021, the government had announced that it would offer the telcos a four-year moratorium on dues and the option to convert dues to the government into equity.
