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    Home»Telecom»Bharti Airtel»Airtel, Vi could save Rs 40,000 crores with Centre’s rethink on spectrum charge
    Bharti Airtel

    Airtel, Vi could save Rs 40,000 crores with Centre’s rethink on spectrum charge

    Lingraj SahuBy Lingraj Sahu06/October/20213 Mins Read
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    Airtel, VI

    In fact, the central government is considering withdrawing the Rs 40,000 crore legal case against telecom companies. If this happens, then there will be a big relief for the telecom sector going through the crisis.

    Telecom companies Bharti Airtel and Vodafone-Idea (VI) can get relief from the central government. In fact, the central government is considering withdrawing the Rs 40,000 crore legal case against telecom companies. If this happens, then there will be a big relief for the telecom sector going through the crisis. Notably, earlier on behalf of the Department of Telecommunications, a legal case has been filed against Anil Ambani-promoted Reliance Communications in the Supreme Court.

    Airtel, Vi

    The matter can be withdrawn by the government

    According to DoT, at present, the telecom sector is going through a crisis due to many reasons. Due to this, the companies have to face a lot of losses. In such a situation, the matters will be reconsidered by the Central Government. There is a case of liability of Rs 40,000 crore on telecom companies to the government.

    However, now the central government wants to resolve this matter out of court separately from the tinkering of the law. In such a situation, the Central Government has demanded a stay on the process of going ahead with the hearing on the petition filed in the case. Along with this, four weeks’ time has been sought from the Supreme Court, so that it can decide whether it has to pursue this matter in the court or not.

    Airtel, Vi

    But the government will also have to take into account the current financial situation of the loss-making Vodafone Idea and consider if the OTSC can also be brought under a moratorium currently covering the adjusted gross revenue (AGR) installments and spectrum payments, the official added.

    If DoT decides to withdraw its appeal, it will be the latest move of the government to help a stressed telecom sector whose stakeholders including banks have appealed for help. In 2019, OTSCs for the sector was about Rs 25,000 crore but in its affidavit to the SC on Tuesday, DoT said the financial liability for telecom service providers would be to the tune of around Rs 40,000 crore.

    Airtel, Vi

    Government announces relief package for telecom sector

    Let us tell you that on September 15, a relief package for the telecom operator was announced by the government. In which the telecom operator was given additional time by the government to pay the dues. Along with this, the penalty on interest was announced to be taken in equity.

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    Bharti Airtel DOT Vodafone Idea
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    Lingraj Sahu
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    Lingraj is one of the youngest members of TelecomByte, and a recent tech geek convert. When he's not churning out articles, you’ll find him watching sports, exploring new places, and listening to music.

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