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Ahead of Prime Minister Narendra Modi`s visit to Australia from 14-19 November 2014, Australian Prime Minister Tony Abbott called Prime Minister on telephone this morning to discuss the agenda for the G 20 Summit in Brisbane. Prime Minister Abbott also conveyed that he and the Australian people were keenly awaiting Prime Minister Modi`s four-city bilateral visit to Australia.

Prime Minister Abbott invited Prime Minister Modi to share, in particular, his vision for accelerating global economic growth and employment generation, based on his personal experiences of reforms and growth at the state level and his plans for India. Prime Minister Abbott also sought PM`s support for Australia`s infrastructure initiatives in the G20.

Prime Minister Modi deeply appreciated Prime Minister Abbott`s personal attention to his visit to Australia. He especially thanked Prime Minister Abbott for his special gesture of hosting a reception for him at the Melbourne Cricket Ground. Prime Minister Modi emphasised the importance he attached to his visit to Australia, as a step towards qualitatively transforming a relationship that he greatly values.

Prime Minister Modi thanked Prime Minister Abbott for his leadership in developing a meaningful agenda for the G 20 Summit and expressed confidence that the Brisbane Summit would be one of the most memorable G 20 Summits, which will impart new momentum in the global economy. Describing G 20 as the key forum for global economic coordination, Prime Minister Modi looked forward to attending his first G20 Summit. Prime Minister offered full support for Prime Minister Abbott`s priorities for the G20 Summit.

Prime Minister Modi shared his concerns on `jobless growth" prospects and felt that focusing on transforming the quality of life of people, not just on issues like the health of the financial markets, is necessary for creating employment-generating economic growth.

He also suggested that, in addition to facilitating financial flows for infrastructure financing, there was a need to look at innovative mechanisms for infrastructure development, including research on transforming waste into infrastructure inputs and creating a virtual centre for information exchange, guidance, identifying opportunities and facilitating flows, which would be beneficial to the poor countries as well

'മൻ കി ബാത്തിനായുള്ള' നിങ്ങളുടെ ആശയങ്ങളും നിർദ്ദേശങ്ങളും ഇപ്പോൾ പങ്കിടുക!
Modi Govt's #7YearsOfSeva
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നടന്നു പോയിക്കോളും എന്ന മനോഭാവം മാറ്റാനുള്ള സമയമാണിത്, മാറ്റം വരുത്താനാവും എന്ന് ചിന്തിക്കുക: പ്രധാനമന്ത്രി മോദി

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നടന്നു പോയിക്കോളും എന്ന മനോഭാവം മാറ്റാനുള്ള സമയമാണിത്, മാറ്റം വരുത്താനാവും എന്ന് ചിന്തിക്കുക: പ്രധാനമന്ത്രി മോദി
Modi govt's big boost for auto sector: Rs 26,000 crore PLI scheme approved; to create 7.5 lakh jobs

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Modi govt's big boost for auto sector: Rs 26,000 crore PLI scheme approved; to create 7.5 lakh jobs
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Cabinet approves major Reforms in Telecom Sector
September 15, 2021
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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.