Telecom operator airtel has now made a similar request to the government on the lines of vodafone and idea to convert its spectrum dues into equity. This request has been made by airtel at a time when a few weeks ago the government has approved the proposal to convert the spectrum dues of Rs 36,950 crore of vodafone idea, which is facing financial crisis, into equity. After which the government's partnership in vodafone idea has now become 48.9 percent, which was earlier 22.6 percent.
An officer of the Telecom Department said that as per the conditions of the 2021 Telecom Reform Package, all telecom operators taking advantage of the government's moratorium proposal are allowed to apply to convert their spectrum dues into equity. In such a situation, now both operators vodafone idea and airtel have done so, after which it will be considered.
According to a business Standard report, under the telecom reform package approved by the Union cabinet in september 2021, the government has given a four-year moratorium on annual payment of dues based on the supreme Court's 2019 decision on adjusted gross revenue.
Under the previous auctions, the government had also deferred the annual payment of dues fixed for the spectrum purchased for four years. In such a situation, it is important that the central government had given an option to the telecom companies facing the current financial crisis to convert a part of the dues into equity.
Telecom market leader Mukesh Ambani-led reliance Jio did not take advantage of this proposal as its AGR dues and dues on spectrum purchase under auction were less. By the year 2022, it had made full payment of the spectrum purchased under the spectrum auctions of 2014, 2015, 2016 and 2021.
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