Telecom relief package: Cabinet defers call on telecom package | India Business News – Times of India
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NEW DELHI: A package for the ailing telecom industry could not be cleared by the Union Cabinet on Wednesday, pending a legal opinion, sources said, adding that the matter is likely to be taken up soon, possibly in the next meeting.
One of the sources said the matter had been tabled at the Cabinet meeting on Wednesday morning, following hectic parleys between various wings of the government to cobble up a revival package in view of the poor health of the sector, especially Vodafone Idea, which appears to be on the brink of a collapse.
“It was decided that a legal opinion needs to be taken on a certain policy decision, and thus the matter was deferred,” the source said. Telecom secretary Anshu Prakash held a meeting with top officials in the ministry as the department works overtime in its efforts to nurse the industry back to health, while also enabling Vodafone Idea to recover.
The telecom package had been hurried as Vodafone Idea threatens to go down on financial woes, a development that may result in a huge loss to the exchequer. Vodafone Idea’s debt is around Rs 1.8 lakh crore, a large part of which is owed to the government.
The government is offering bailout as it wants to avoid a duopoly in the telecom sector. It feels that Vodafone Idea’s presence ensures adequate competition in the sector. which has other private players such as Reliance Jio and Bharti Airtel. Prakash and senior officials from the telecom department had made presentations at the Prime Minister’s Office (PMO), ahead of preparing the note for the consideration of the Cabinet.
One of the sources said the matter had been tabled at the Cabinet meeting on Wednesday morning, following hectic parleys between various wings of the government to cobble up a revival package in view of the poor health of the sector, especially Vodafone Idea, which appears to be on the brink of a collapse.
“It was decided that a legal opinion needs to be taken on a certain policy decision, and thus the matter was deferred,” the source said. Telecom secretary Anshu Prakash held a meeting with top officials in the ministry as the department works overtime in its efforts to nurse the industry back to health, while also enabling Vodafone Idea to recover.
The telecom package had been hurried as Vodafone Idea threatens to go down on financial woes, a development that may result in a huge loss to the exchequer. Vodafone Idea’s debt is around Rs 1.8 lakh crore, a large part of which is owed to the government.
The government is offering bailout as it wants to avoid a duopoly in the telecom sector. It feels that Vodafone Idea’s presence ensures adequate competition in the sector. which has other private players such as Reliance Jio and Bharti Airtel. Prakash and senior officials from the telecom department had made presentations at the Prime Minister’s Office (PMO), ahead of preparing the note for the consideration of the Cabinet.
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