Government Relief Package for the Telecom Industry
Major changes to the telecom sector have been approved by the government. The telecom sector has benefited from these developments, as the definition of AGR has been altered and FDI has been permitted in its entirety.
100% FDI approved.
Many critical decisions were made during Prime Minister Narendra Modi’s cabinet meeting on Wednesday, including major choices affecting the telecom sector. Telecom Minister Ashwini Vaishnav announced during the meeting that nine structural reforms for the telecom sector had been agreed. The definition of AGR has also been clarified by the government. The AGR definition has been the subject of much dispute, with the government opting out of including non-telecom profits from telecom businesses. The cabinet has approved 100 percent foreign direct investment (FDI) in the telecom sector via the automatic method, according to the minister. He stated that the cabinet has approved AGR and spectrum dues for a period of four years.
