Spectrum fee: Panel for more time to telcos

Sources said that the IMG report is likely to be finalised within a week after which it will be placed before the Telecom Commission at its meeting on September 1.

The government appointed inter-ministerial group (IMG) on telecom on Tuesday almost finalised its recommendations with the consensus favouring only extension in the deferred payment period for spectrum bought in auctions from the current 10-year period to 16 years. However, there won’t be any extension in the two-year moratorium operators get after paying a portion of the amount upfront.

Sources said that the move would bring cash flow relief to the operators. The telecom industry’s total debt stands at around Rs 4.60 lakh crore. It has bought spectrum since 2010 worth Rs 3.45 lakh crore for which an upfront payment of Rs 1.90 lakh crore has been made and the balance Rs 3.08 lakh crore needs to be paid up to 2028-29. If the deferred payment period is increased, this amount would be paid over a longer tenure. The other measure on which the IMG reached a consensus was that if there is any delay in payments by operators of licence fee or spectrum usage charges, etc, the interest will be charged on the basis of MCLR instead of PLR.

Sources said that the IMG report is likely to be finalised within a week after which it will be placed before the Telecom Commission at its meeting on September 1. As indicated by an IMG official at the last meeting earlier this month, no major change in policy would be recommended by the IMG by way of reducing the licence fee or spectrum usage charge on which the entire industry was united in its presentation before the panel. Sources said that the members of the finance ministry in the panel were opposed to any such measure which impacts government revenues. In FY17, total receipts for the government from telecom services, including spectrum auctions, was at Rs 78,715 crore.

(With FE inputs)