Indian Government Giving Telecom Sector the Breather It Needed

The Indian government is giving the telecom sector the breather it needs. It all started with the relief package that was announced back in September 2021. Last year, when the Department of Telecommunications (DoT) got the upper hand on the telcos in the adjusted gross revenues (AGR) dues case at the Supreme Court, some of the people in the industry were perplexed. It felt like the telecom department was out there to squeeze the telcos dry even when the industry wasn’t at its best. Especially with Vodafone Idea (Vi) not seeing a hint of profits, it just felt wrong.

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In 2021, the sector’s condition worsened. The statutory dues were getting too much, especially for Vodafone Idea (Vi). It almost felt like the government was going to let the sector go down, with Vi having no future. There weren’t many expectations from the centre since there is no precedent for it. The Indian government isn’t known for bailing out private sector companies.

But this time, the government had to do something. It was the telecommunications industry that was in concern. The Modi government has been very vocal about how it wants to make India a digital country. Letting the telecom industry sink wasn’t the best way of showing it.

Thus, the relief package came. The Indian government in September announced that it was going to give the telecom operators a four-year moratorium in payments of the dues and the interests accrued on those dues.