In what may come as a relief for the stressed telecom sector, the Union Cabinet is likely to hold talks with various stakeholders of the industry, including banks, and is planning to consider a relief package for the sector. As per reports, the government is of the view that competition is necessary for the sector and that any chances of a duopoly should be averted.
Though financially stressed Vodafone Idea Limited (Vi) has been at the forefront of asking for a relief package, sources claim that the relief package would not be tailor-made for an entity in particular, but would focus on the entire sector.
Though exact components of the relief package are yet to be known, it is likely that the package may comprise reduction in licence fees, spectrum usage charges, clarity on the definition of adjusted gross revenue and extension of moratorium on deferred spectrum installment by a period of two years.
Liberalisation of foreign direct investment (FDI) norms from a security viewpoint and doing away with the need to furnish bank guarantees may also be highlighted in the package.
