Report: DoT to Set up Panel for Preparing Telecom Sector Relief Package

The DoT may reportedly appoint an external consultant or set up a panel to prepare the telecom sector relief package.

Telecom Sector Relief Package Coming Soon

According to a report by Business Standard, to prepare the telecom sector relief package, the telecom sector will hire either an external consultancy or set up an internal panel. This package has generated some buzz across the sector, and will seek to provide some financial respite to the sector.

Notably, the package might include reduction of bank guarantees, removing or reducing levies such as license fees and SUC, redefining AGR to exclude non-telecom items, and so on. The telecom department has had inputs from IIM-A and Deloitte for BSNL's revival package earlier on. “Consultations with these bodies help us evaluate the options better,” an official told the publication.

Amidst all the issues the telco has been facing, Vodafone Idea has also been trying to raise ₹25,000 crore for over 10 months but hasn’t been successful so far. What's more, the telco has failed in getting its AGR bill reduced as well. This has left the telco in a precarious position; as of March-end, Vodafone Idea owes ₹1.57 trillion to the government. This includes spectrum payments and AGR liability.

In a meeting with DoT on friday, Voda Idea's lenders told that converting the telco's debt to equity can help the telco. The banks have about ₹35,000 crore exposure in the telco; the lenders said that about ₹13,800 crore of that can default.