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DoT gives telcos till Oct 29 to opt for moratorium

The letter gives the telcos till January 14, 2022 to mention whether they would opt to convert their interest dues on deferred spectrum payments to equity.

The letter gives the telcos till January 14, 2022 to mention whether they would opt to convert their interest dues on deferred spectrum payments to equity.

The Department of Telecommunications (DoT) on Monday wrote to the three private telecom companies, Bharti Airtel, Vi, and Reliance Jio Infocomm, asking them to clarify by October 29 if they would opt for the four-year moratorium on the payment of adjusted gross revenues and deferred spectrum payments, senior government officials said.

According to the officials, the letter was sent last week on Friday, thereby giving the telcos two weeks to respond. “Two private telcos have indicated that they would opt for the moratorium but there has been no official communication from their side,” a DoT official said. “We had several internal consultations. The telcos need to tell us in writing on whether they would like to opt for the moratorium or not because only then we can decide whether that money has to be factored in for the revised estimates of this and coming fiscal’s revenue receipts,” a government official said.

The letter gives the telcos till January 14, 2022 to mention whether they would opt to convert their interest dues on deferred spectrum payments to equity. For the valuation, the letter said, “The necessary order for invoking Section 62(4) of the Companies Act will be issued by the competent department, directing the present value of the interest on deferred AGR-related and spectrum auction dues during the moratorium period shall be treated as a loan to the company and then converted from loan to equity shares”.

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First published on: 19-10-2021 at 01:08:03 am
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