Govt sets up panel of secretaries to help ease stress in telecom sector

The committee, led by Cabinet Secretary Rajiv Gauba, will have secretaries from finance, law, telecom ministries

The government has set up a committee of secretaries (CoS) under Cabinet Secretary Rajiv Gauba to suggest measures to mitigate financial stress in the telecom sector, which is looking at a payout of Rs 1.33 trillion to clear statutory dues.

The Supreme Court (SC) had on October 24 agreed with the Department of Telecom’s (DoT’s) definition of adjusted gross revenue (AGR), asking the telcos to pay dues and interest within three months. The telcos had subsequently appealed to the government to reduce the amount and also extend the deadline or provide a moratorium.

The CoS will comprise representatives from the ministries of finance, law and telecom. Sources in the government said it will consider issues such as deferment of spectrum auction for two years and reduction in spectrum usage charges, and take a relook at the Universal Service Obligation Fund (USOF) charges.

For spectrum auction charges, telcos will have to fork out Rs 49,040 crore in the next two years. While the Telecom Regulatory Authority of India (Trai) has suggested that USOF charges — paid to make telcos take their services to rural areas — be 3 per cent, and not 5 per cent…