Telecom industry urges govt to facilitate funding at lower interest rate
PTI, Jan 7, 2020, 1:42 PM IST
New Delhi: Telecom industry on Monday urged the government to facilitate funding for telecom companies at lower interest rates to help them reduce capital costs.
Representatives from the industry met telecom ministry officials to communicate their suggestions to help the debt-ridden sector. The DoT, which has given time till Tuesday to send in written recommendations, will compile these demands and send them to the Finance Ministry for consideration in the forthcoming Budget.
According to a senior government official, most demands made were on similar lines as before, including a reduction in Universal Service Obligation Fund (USOF) levy and licence fees.
The official added that one of the recommendations was related to input line credit.
Besides, the industry has also sought facilitation of funding at lower interest rates to telecom companies, removal of GST on licence fee, spectrum usage charges (SUC) and on payment of spectrum charges, and refund of the accumulated input tax credit, the official said.
They have also urged that telecom towers be included in the definition of plant and machinery for the input tax credit and further promotion of Make in India by setting up a dedicated fund that can be used by the purchaser of telecom equipment.
One of the representatives present in the meeting said the industry has requested setting up of a working group with stakeholders from the telecom ministry, Telecom Regulatory Authority of India (TRAI) and the industry, which will work on preparing guidelines for adopting the principle of input line credit.
The representative said that the telecom industry is capital intensive and needs to generate funds from domestic sources at affordable rates.
“We have requested the government to facilitate funding at lower rate of interest so as to plough more funds for network upgradation, maintenance and expansion,” another representative said.
Other recommendations included a reduction in USOF contribution to 3 per cent and license fee to 1 per cent of adjusted gross revenue (AGR).
The industry also sought that the payment of regulatory levy should be exempted from tax under GST.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Markets fall in early trade amid unabated foreign fund outflows
New software for fast-tracking project approvals: Karnataka Minister Patil
In-flight passengers can access WiFi services only when allowed, say new rules
SEBI mulls separation of non-regulated activities; ‘cross-default’ definition for debenture trustees
Sensex plunges 942 points to settle at nearly 3-month low; RIL, HDFC Bank biggest drag
MUST WATCH
Latest Additions
Govt asks Wikipedia why it should not be treated as publisher instead of intermediary
MUDA Case: K’taka HC adjourns hearing to November 26
SC upholds validity of UP madrassa law, says it does not violate principle of secularism
Union Minister H D Kumaraswamy booked for threatening police officer
Bantwal: Theft at Shree Mahalingeshwar temple
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.