Telecom industry revival package: Telcos get cash flow boost as Cabinet clears relief package

The Union Cabinet on Wednesday approved the much-awaited revival package for the telecom industry, which is a combination of cash flow relief for the financially stressed operators as well as long-term measures like redefinition of adjusted gross revenue (AGR) and scrapping of spectrum usage charge in future auctions.

The major part of the package, which provides immediate cash flow relief to the financially stretched Vodafone Idea, is that the payment of AGR dues has been deferred for four years with the net present value protected. Similarly, the deferred spectrum instalments, which operators pay for spectrum acquired in the past auctions, have also been deferred for four years. There was already a moratorium on it for FY21 and FY22, so adding that, operators have got a six-year moratorium.