The Union Cabinet can give a lump sum exemption in the case of spectrum arrears. This exemption can exceed Rs 6 lakh crore. But this exemption will be for government departments like defense, railway and space. According to CNBCTV-18, official sources have shown that the discount will not be for public sector undertakings (PSUs) or private companies in the sector sector. This means that telecom companies Vodafone Idea, Airtel, Reliance Jio, Tata Teleservices will not get any relief.
Although nothing was said about this decision in the official press briefing after the cabinet meeting, sources say the proposal has been approved and will be implemented soon. Sources have indicated that the amount of spectrum arrears on government departments including interest and fine has exceeded Rs 6 lakh crore.
Which ministries are among the biggest defaulters
Most of this arrears is of the spectrum that was assigned to government agencies for major functions like defense communication, satellite operation and railway communication. Ministry of Defense, Ministry of Information and Broadcasting, Ministry of Space and Railways are among the largest defaulters. Some of his spectrum dues have been pending since 2004. Over the years, the outstanding amount has increased manifold due to late fee and compound interest.
Only the original amount will have to be paid with 5% interest
The purpose of this proposed lump sum relief is to waive penalty on spectrum arrears for government departments like defense, railway and space. Another report states that under the new decision, government departments will only have to pay the original amount with about 5% interest. The rest of the arrears will be waived.
