The country’s top telecom companies can hope to get considerable relaxation as the Telecom Commission (TC), the highest decision-making body of the Department of Telecommunications, is likely to take a final decision on the relief package for the industry at a meeting on Saturday.

After getting TC’s clearance, it will be sent to the cabinet for final approval. The industry has been under stress due to intense competition and high debt.

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Telecom Minister Manoj Sinha told The Statesman in an exclusive interview that the government will give considerable relief to the telecom companies. “We are open to addressing the issue further in the New Telecom Policy which will be announced by March 2018,” he said. However, nothing can be done retrospectively, he clarified, adding that the government was trying to play the role of a facilitator for the sector.

The Inter-Ministerial Group (IMG), set up to suggest measures to ease financial stress in the telecom sector, recently submitted a report to the government recommending extension of deferred payment schedule from 10 to 16 years.

Currently, the companies have to pay a portion of the spectrum auction amount upfront. The remaining, after a two-year moratorium, has to be paid every year in 10 installments.

The panel has also recommended migration from Prime Lending Rate (PLR) to Marginal Cost of Funds-based Lending Rate (MCLR) for interest payments. However, on easing of spectrum limits for consolidation, the panel has suggested holding consultations with telecom regulator Telecom Regulatory Authority of India (TRAI).

Telecom companies had flagged pressure on profitability and revenue affecting health of the sector in a meeting with the government on 22 June and sought sops to overcome the crisis.

The reality is that the already troubled sector came under crisis with the entry of Reliance Jio in 2016. Sinha hopes the sector will settle down over one year.

In the past also, an operator’s entry led to churn in the sector, he said.

The IMG was set up three months ago to suggest solutions for the stressed sector reeling under intense competition and high debt. The telecom companies are laden with debt of about Rs 5 lakh crore.

The IMG submitted its report to the government recently. While it has recommended several steps to provide relief to the companies, the companies are unhappy over it not recommending any reduction in the license fee or spectrum charges. Sources point out that government can go for policy changes later on if the sector doesn’t show signs of recovery.