Govt cuts interest, penalty for telecom licences

The government today reduced the rate of interest and penalty for delayed payments for all new unified access licensees, including basic companies migrating to UASL, NLD and ILD players by amending the finance-related licence conditions.

Any delay in payment of licence fee or any other dues payable under the licence beyond the stipulated period will attract interest at a rate of 2% above the prime lending rate of SBI at the beginning of the fiscal (April 1) in respect of the licence fees pertaining to 2005-06, department of telecom officials said today.

Earlier, the interest rate stood at 5% above SBI's LPR.

In case the total amount paid as quarterly licence fee for the four quarters of the fiscal fell short by more than 10% of the payable fee, it shall attract a penalty of 50% of the entire amount of short payment from the current fiscal. Earlier, this penalty was 150%, they said.

The short payment, along with the penalty, shall be payable within 15 days of the date of signing the audit report.