Telecom companies in India are set to receive a financial boost with the government preparing a relief package for the sector.

As per industry sources, the package is expected to be announced in April 2020 and will contain measures such as extension of the deadline for paying adjusted gross revenues (AGR) dues as well as a reduction in base prices for 5G spectrum auction.

Further, a mechanism for providing cheap debt capital through a special purpose vehicle for enabling 5G auctions is also being discussed.

However, as per sources, the government is unlikely to reduce the penalty and interest owed by telecom firms in AGR dues.