Cabinet approves major Reforms in Telecom Sector

Published By : Admin | September 15, 2021 | 21:22 IST

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, today approved a number of structural and process reforms in the Telecom sector. These are expected to protect and generate employment opportunities, promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs).

In the backdrop of the outstanding performance of the Telecom Sector in meeting COVID-19 challenges, with huge surge in data consumption, online education, work from home, interpersonal connect through social media, virtual meetings etc., the Reform measures will further boost the proliferation and penetration of broadband and telecom connectivity. The Cabinet decision reinforces the Prime Minister’s vision of a robust Telecom Sector. With competition and customer choice, antyodaya for inclusive development and bringing the marginalized areas into the mainstream and universal broadband access to connect the unconnected. The package is also expected to boost 4G proliferation, infuse liquidity and create an enabling environment for investment in 5G networks.

Nine structural reforms and Five procedural reforms plus relief measures for the Telecom Service Providers are as below:

Structural Reforms

  1. Rationalization of Adjusted Gross Revenue:  Non-telecom revenue will be excluded on prospective basis from the definition of AGR.
  2. Bank Guarantees (BGs) rationalized: Huge reduction in BG requirements (80%) against License Fee (LF) and other similar Levies. No requirements for multiple BGs in different Licenced Service Areas (LSAs) regions in the country. Instead, One BG will be enough.
  3. Interest rates rationalized/ Penalties removed: From 1st October, 2021, Delayed payments of License Fee (LF)/Spectrum Usage Charge (SUC) will attract interest rate of SBI’s MCLR plus 2% instead of MCLR plus 4%; interest compounded annually instead of monthly; penalty and interest on penalty removed.
  4. For Auctions held henceforth, no BGs will be required to secure instalment payments. Industry has matured and the past practice of BG is no longer required. 
  5. Spectrum Tenure: In future Auctions, tenure of spectrum increased from 20 to 30 years.
  6. Surrender of spectrum will be permitted after 10 years for spectrum acquired in the future auctions.
  7. No Spectrum Usage Charge (SUC) for spectrum acquired in future spectrum auctions.
  8. Spectrum sharing encouraged- additional SUC of 0.5% for spectrum sharing removed.
  9. To encourage investment, 100% Foreign Direct Investment (FDI) under automatic route permitted in Telecom Sector. All safeguards will apply.

Procedural Reforms

  1. Auction calendar fixed - Spectrum auctions to be normally held in the last quarter of every financial year.
  2. Ease of doing business promoted - cumbersome requirement of licenses under 1953 Customs Notification for wireless equipment removed. Replaced with self-declaration.
  3. Know Your Customers (KYC) reforms: Self-KYC (App based) permitted. E-KYC rate revised to only One Rupee. Shifting from Prepaid to Post-paid and vice-versa will not require fresh KYC.
  4. Paper Customer Acquisition Forms (CAF) will be replaced by digital storage of data. Nearly 300-400 crore paper CAFs lying in various warehouses of TSPs will not be required. Warehouse audit of CAF will not be required.
  5. SACFA clearance for telecom towers eased. DOT will accept data on a portal based on self-declaration basis. Portals of other Agencies (such as Civil Aviation) will be linked with DOT Portal.

Addressing Liquidity requirements of Telecom Service Providers

The Cabinet approved the following for all the Telecom Service Providers (TSPs):

  1. Moratorium/Deferment of upto four years in annual payments of dues arising out of the AGR judgement, with however,  by protecting the Net Present Value (NPV) of the due amounts being protected.
  2. Moratorium/Deferment on due payments of spectrum purchased in past auctions (excluding the auction of 2021) for upto four years with NPV protected at the interest rate stipulated in the respective auctions.
  3. Option to the TSPs to pay the interest amount arising due to the said deferment of payment by way of equity.
  4. At the option of the Government, to convert the due amount pertaining to the said deferred payment by way of equity at the end of the Moratorium/Deferment period, guidelines for which will be finalized by the Ministry of Finance.

The above will be applicable for all TSPs and will provide relief by easing liquidity and cash flow. This will also help various banks having substantial exposure to the Telecom sector.

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Prime Minister congratulates eminent personalities nominated to Rajya Sabha by the President of India
July 13, 2025

The Prime Minister, Shri Narendra Modi has extended heartfelt congratulations and best wishes to four distinguished individuals who have been nominated to the Rajya Sabha by the President of India.

In a series of posts on social media platform X, the Prime Minister highlighted the contributions of each nominee.

The Prime Minister lauded Shri Ujjwal Nikam for his exemplary devotion to the legal profession and unwavering commitment to constitutional values. He said Shri Nikam has been a successful lawyer who played a key role in important legal cases and consistently worked to uphold the dignity of common citizens. Shri Modi welcomed his nomination to the Rajya Sabha and wished him success in his parliamentary role.

The Prime Minister said;

“Shri Ujjwal Nikam’s devotion to the legal field and to our Constitution is exemplary. He has not only been a successful lawyer but also been at the forefront of seeking justice in important cases. During his entire legal career, he has always worked to strengthen Constitutional values and ensure common citizens are always treated with dignity. It’s gladdening that the President of India has nominated him to the Rajya Sabha. My best wishes for his Parliamentary innings.”

Regarding Shri C. Sadanandan Master, the Prime Minister described his life as a symbol of courage and resistance to injustice. He said that despite facing violence and intimidation, Shri Sadanandan Master remained committed to national development. The Prime Minister also praised his contributions as a teacher and social worker and noted his passion for youth empowerment. He congratulated him on being nominated to the Rajya Sabha by Rashtrapati Ji and wished him well in his new responsibilities.

The Prime Minister said;

“Shri C. Sadanandan Master’s life is the epitome of courage and refusal to bow to injustice. Violence and intimidation couldn’t deter his spirit towards national development. His efforts as a teacher and social worker are also commendable. He is extremely passionate towards youth empowerment. Congratulations to him for being nominated to the Rajya Sabha by Rahstrapati Ji. Best wishes for his role as MP.”

On the nomination of Shri Harsh Vardhan Shringla, the Prime Minister stated that he has distinguished himself as a diplomat, intellectual, and strategic thinker. He appreciated Shri Shringla’s contributions to India’s foreign policy and his role in India’s G20 Presidency. The Prime Minister said he is glad to see him nominated to the Rajya Sabha and expressed confidence that his insights will enrich parliamentary debates.

The Prime Minister said;

“Shri Harsh Vardhan Shringla Ji has excelled as a diplomat, intellectual and strategic thinker. Over the years, he’s made key contributions to India’s foreign policy and also contributed to our G20 Presidency. Glad that he’s been nominated to the Rajya Sabha by President of India. His unique perspectives will greatly enrich Parliamentary proceedings.
@harshvshringla”

Commenting on the nomination of Dr. Meenakshi Jain, the Prime Minister said it is a matter of immense joy. He acknowledged her distinguished work as a scholar, researcher, and historian, and noted her contributions to education, literature, history, and political science. He extended his best wishes for her tenure in the Rajya Sabha.

The Prime Minister said;

“It’s a matter of immense joy that Dr. Meenakshi Jain Ji has been nominated to the Rajya Sabha by Rashtrapati Ji. She has distinguished herself as a scholar, researcher and historian. Her work in the fields of education, literature, history and political science have enriched academic discourse significantly. Best wishes for her Parliamentary tenure.
@IndicMeenakshi”