The Union Cabinet approved a two-year moratorium to telecom operators on pending spectrum payment, which will help telcos avoid an immediate outflow of over ₹42,000 crore. “Receipt of the instalments due for 2020-21 and 2021-22 has been deferred,” Finance Minister Nirmala Sitharaman told a press meet.The deferred amount will be equally spread over the remaining instalments to be paid by the companies “without any increase in the existing time period specified for making the instalment payments”. “The interest as stipulated while auctioning of the concerned spectrum will, however, be charged so that NPV [net present value] of the payable amount is protected,” the Minister added. Additionally, the TSPs will need to securitise the next payable annual instalment by financial bank guarantee, as per the current practice. The move will help Bharti Airtel prevent an outgo of ₹11,746 crore, while for Vodafone Idea and Reliance Jio, the amount stands at ₹23,920 crore and ₹6,670 crore, respectively. A senior Telecom Ministry official said while the government is willing help the sector, the top three operators have been asked to meet and discuss measures industry can take to mitigate the stress in the sector.

(The Hindu)