Cabinet approves 4-year moratorium on payment of all govt dues by telcos

Cabinet rationalises AGR definition, excludes non-telecom revenue of telcos from payment of statutory levies, allows 100% automatic FDI in telecom sector with safeguards

In big bang reforms, the Union Cabinet on Wednesday approved a relief package for the telecom sector that includes a four-year moratorium on payment of statutory dues by telecom companies as well as allowing 100% foreign investment through the automatic route.

Briefing reporters on the decisions taken by the Cabinet, Telecom Minister Ashwini Vaishnaw said nine structural reforms for the telecom sector were approved.

The definition of AGR, which had been a major reason for the stress in the sector, has been rationalised by excluding non-telecom revenue of telecom companies.

AGR refers to revenues that are considered for payment of