New Delhi: In a major relief for telecom companies especially Vodafone Idea, the Union Cabinet on Wednesday approved a 4-year moratorium period for the sector facing severe cash crunch.
The relief package will not only address the pressing issues of the Telecom sector but will also enable them a window to straighten out their finances.
The relaxation to stressed telecom sector comes days after Vodafone Idea implored the government to either bring structural reforms or take over control of the company.
Kumar Mangalam Birla, former chairman of Vodafone Idea Ltd had written to govt offering his stake in Vodafone Idea to government or any company approved by the government for free.
Vodafone, along with other telecom companies, have huge outstanding dues and are liable to pay thousand of crores to govt for AGR dues. Vodafone alone has an outstanding due of about Rs 50,399.63 crore.
Those companies availing benefit of moratorium will have to pay some interest, Union Minister Ashwini Vaishnaw announced today.
