Telecom SOS: Cabinet may take call on telecom relief package today

The Union Cabinet is expected to take up the department of telecommunications’ (DoT’s) proposal for offering a relief package to the telecom industry at its meeting on Wednesday, official sources said. Though financially-troubled Vodafone Idea (VIL) has been at the forefront of demanding a relief package, sources said that it would not be tailor-made for any specific company but would be for the entire sector.

Still, any relief package at this point of time would benefit VIL the most. It would also protect government’s revenues and exposure of banks to the company. Of VIL’s net debt of Rs 1.8 lakh crore, government dues in the form of deferred spectrum payment (Rs 96,300 crore) and AGR dues (Rs 61,000 crore) come to around Rs 1.57 lakh crore.