Telcos likely to get moratorium of 4 years for AGR dues: Report

The Union Cabinet on Wednesday approved a moratorium on payment of spectrum dues by telecom firms as part of a package for the sector aimed at giving relief to companies such as Vodafone Idea that have to pay thousands of crores of rupees in unprovisioned past statutory dues, said news reports.

Cabinet has approved moratorium of 4 years for AGR dues, the reports states. There is also a component of equity-related conversion in the relief package, which will offer a gesture of goodwill and help companies raise funds, say reports.

The move will come six weeks after billionaire Kumar Mangalam Birla resigned as chairman of beleaguered Vodafone Idea Ltd (VIL) on August 4.