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Govt should offer one-time settlement scheme to telcos for principal due amount: Garg
Feb-20-2020

Underlining the telecom crisis in India is not limited to adjusted gross revenue (AGR) related issues, Former Finance Secretary Subhash Chandra Garg has said the government should offer a one-time settlement scheme to the telecom companies to pay the principal due amount as per the AGR definition and waive the penal interest and penalties.

Subhash Chandra Garg also noted that the telecom business -- both voice and data -- is headed towards becoming a duopoly (Jio and Airtel) with the remaining two players, Vodafone Idea and BSNL-MTNL, hurtling towards eventual shutdown, which might as well be an abrupt collapse.

Former Finance Secretary also wondered whether the proposal of the government to put in billions of dollars (over Rs 70,000 crore) to revive BSNL-MTNL is advisable or not as the country is facing massive economic slowdown.

Meanwhile, the Supreme Court last week rejected a plea by telecom firms including Bharti Airtel and Vodafone Idea for extension in the payment schedule and asked them to deposit an estimated Rs 1.47 lakh crore in past dues for spectrum and licenses by March 17.

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