The telecom sector got a boost earlier this year when the Indian government came out with a set of aid reforms. Telcos got an option to accept a moratorium on payments of statutory dues, and the Department of Telecommunications (DoT) also returned the bank guarantees (BGs) worth thousands of crores to the operators. But the government isn’t going to stop there. There is another set of reforms for the sector lurking around the corner.
The telecom sector reforms 2.0 are expected to be announced by the government in a short time frame. According to a LiveMint report, the next set of reforms will keep their focus on reducing litigation from the sector and also bringing in easy reforms.
Telcos to Face Less Litigation and Get Aided by Easy Norms in the Sector
According to the publication’s report, the centre is considering several options right now, which also includes bringing in a new law or making changes to the existing one.
Ashwini Vaishnaw, Communications and Information Technology minister, said the government’s aim is to promote innovation in the industry and connect the unconnected. The government doesn’t want the telcos to be busy with litigation.
Vaishnaw added that many cases have already become defunct after the government changed the definition of the adjusted gross revenue (AGR).
The minister said the government was currently looking at all the options when the topic of whether the centre would try and bring fresh legislation to aid the growth of the industry came up.
The telecom sector reforms 2.0 won’t just focus on less litigation but also on the rationalisation of levies and taxes. Note that DoT has already recommended to the finance ministry that credits should be refunded to the telcos worth more than Rs 50,000 crore that is stuck under the goods and services tax. But this isn’t something that will happen right away as the issue is a little more complex to resolve.