Prime Minister Narendra Modi on Wednesday said the cabinet’s decision on the telecom sector is a ‘watershed moment’. The PM said the reforms are a win-win for the sector and consumers as they will ensure regional growth and job opportunities.
Taking to Twitter, PM Modi wrote, “This is a momentous moment for the telecom sector, which plays a vital role in connecting and empowering our nation. Today’s reforms approved by the cabinet are a win for the sector and consumers. They ensure regional development and job opportunities.”
In his response to another Cabinet decision for Auto and Drone Industry, he said, “Continuing the reform path, the Cabinet has approved a PLI Scheme for Auto Industry and Drone Industry. This will accelerate manufacturing and will bring.” sector in line with global trends as well as best practices.”
The Union Cabinet chaired by PM Modi has approved several structural and process reforms in the telecom sector, including a four-year break from payment of statutory dues for companies, permission to share scarce airwaves, change in the definition of revenue. Levies are paid and 100% foreign investment is made through the automatic route.
It also aims to provide relief to companies like Vodafone Idea, which have to pay thousands of crores in unorganized past statutory dues, including waiving of spectrum usage charges (SUC) for airwaves received in future spectrum auctions.
According to the cabinet, in the backdrop of the excellent performance of the telecom sector in meeting the challenges of COVID-19, a surge in data consumption, online education, work from home, interaction through social media, virtual meetings etc. The reform measures will further boost the spread and penetration of broadband and telecom connectivity.
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