PLI relieves stressed sector: COAI
Telecom industry body Cellular Operators Association of India (COAI) lauded telecom relief package approved by the Cabinet on Wednesday, which will be implemented prospectively and provide a breather to the sector that is reeling under heavy stress.
The Cabinet has approved the inclusion of only revenues earned from telecom services in the adjusted gross revenue and removal of penalty on dues to be paid to the government prospectively.
SP Kochhar, Director General, COAI, said: "On the face of it, we welcome the prospective directions of the package announced, which is aligned with our long-standing asks. Going forward, this will give some relief to our greatly stressed sector for sure."
Kochhar added that the industry takes it as an indicator of the government thinking and is keenly awaiting rationalisation of costs and processes of 5G roll-out. "Structured comments will follow after the package is analysed in detail."
Telecom Minister Ashwini Vaishnaw said that the Cabinet has allowed a 4-year moratorium on all dues that telecom operators have to pay to the government, but it will have to be paid within the 10-year timeframe as decided earlier. KS Legal and Associates Managing Partner Sonam Chandwani said, "This will give troubled telecom carriers like Vodafone Idea (VI) much-needed breathing room as they pay crores of rupees in previous statutory dues.