85 breached
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
Telecom Commission, the highest decision making body of the Telecom Department, has deferred its decision on relief package for debt-laden telecom companies, sources said.
Some clarifications have been sought from the inter-ministerial panel that has recommended measures to provide relief to the stressed sector, said sources, adding that the next meeting of the commission will be held in a fortnight.
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Once Telecom Commission decides on the inter-ministerial group (IMG) recommendations, the decision will have to be vetted by the Cabinet.
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The clarification has been sought on the key recommendations made by IMG set up by the government to review the health of telecom sector. They include extension of deferred payment schedule for spectrum from 10 to 16 years and replacing Prime Lending Rate (PLR) to Marginal Cost of Funds-based Lending Rate (MCLR) for calculation of interest.
This is on the lines of RBI mandated internal benchmark rate for the delayed payment of license fees and spectrum usage charges.
On the issue of reviewing spectrum cap Department of Telecom may hold consultation with the telecom regulator Telecom Regulatory Authority of India (TRAI), sources said. This move is likely to help the telecom sector to consolidate further.
Reeling under the debt of Rs.5 lakh crore, telecom companies had sought sops from the government citing pressure on profitability and revenue affecting health of the sector.
Meanwhile, the Telecom Commission has cleared the second phase of the BharatNet project. Under this, another 1.5 lakh village panchayats will be connected with broadband by March 2019. The government expects to start broadband services across 1 lakh gram panchayats by the end of this year.
The commission also cleared a proposal for setting up of 2,000 Airtel mobile towers in the unconnected villages of the North East for improving connectivity.
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