Kumar Mangalam Birla meets Telecom Minister amid aid package deal for sector

Even as the federal government is believed to be engaged on a aid package deal for the telecom sector, Aditya Birla Group (ABG) chairman Kumar Mangalam Birla met Union telecom minister Ashwini Vaishnav on Wednesday, a few month after he stepped down as chairman of cash-strapped telecom service (Vi).

It was not instantly clear what transpired on the assembly, nevertheless it comes within the backdrop of the Department of Telecommunications (DoT) and the finance ministry readying a aid package deal for the telecom sector. Sources advised ET that the proposed measures could possibly be introduced in a single go or be unfold over the following few months.

“The focus is to get going, to start announcing relief measures and while some are expected in the next few days, more could follow later,” a senior authorities official advised ET.

A spokesperson for ABG didn’t instantly reply to ET’s electronic mail searching for remark.

There is a proposal to loosen up fee of Adjusted Gross Revenue (AGR) by the telcos, whereas different steps may embrace a discount in licence charges and growing the fee moratorium for spectrum purchased in auctions by an additional two years.

Some measures associated to those may assist the corporate rope in contemporary traders.

Two months in the past, Birla had provided ABG’s stake in Voda Idea to any government-owned entity, cautioning that if the federal government didn’t convey out a aid package deal quickly then the corporate may go beneath.

The telco, which had money and money equivalents of solely ₹920 crore as of June finish, is dealing with a debt burden of ₹1.9 lakh crore. It is gazing ₹58,254 crore in AGR dues, of which the telco has paid ₹7,854 crore.

Vi must pay round ₹9,000 crore as a part of its subsequent AGR instalment, which is due in March subsequent 12 months.

Industry consultants aver that the beleaguered service wouldn’t be capable of make the fee except it raises funds, will increase tariffs and is assured of some structural aid by the federal government. TGI