Relief for telecom sector: Govt approves 4-yr moratorium on AGR dues. Highlights

1 week ago 5

The Union Cabinet on Wednesday briefed on several Cabinet decisions taken earlier in the day. Among them, the revised production-linked incentive (PLI) scheme for the automobile sector, which aims at promoting domestic manufacturing and create jobs has been approved.

Along with that, the Cabinet also approved a package for the telecom sector, aimed at giving relief to companies such as Vodafone Idea that have to pay thousands of crores in unprovisioned past statutory dues. 

Union Ministers Anurag Thakur and Ashwini Vaishnaw are briefing the media today in New Delhi.

Here are the highlights of the Cabinet decisions: 

-PM took a bold decision over AGR (adjusted gross revenue) today. A decision has been taken to rationalise the definition of AGR. All non-telecom revenue will be taken out of AGR: Telecom Minister.

-Cabinet has approved 4-year moratorium on AGR dues, says Telecom minister. 

-100% FDI in telecom via automatic route is approved by Cabinet: Telecom Minister.

-Non-telecom revenue won't be included in AGR definition prospectively: Telecom Minister

-AGR definition is rationalised, non-telecom revenue won't be included in AGR definition: Telecom minister.

-9 big approvals have been taken in the telecom sector today, says Vaishnav. 

-Union Telecom Minister Ashwini Vaishnav now briefs on telecom sector decisions. 

-Battery and hydrogen fuel cell makers to get additional incentive; 5% additional incentive for electric and hydrogen fuel cell vehicle. Incentives under the Auto PLI Scheme range from 8-13%: Thakur says. 

-India's share in global auto sector is 2% and there is a need to increase it, says Thakur. 

-Want to make auto sector globally competitive. 

-Need to reduce auto component imports of 17 billion.

-2-wheelers and 3-wheelers have to make investments of 1,000 cr over five years. Component makers will have to make investments of 500 cr over five years under the PLI scheme.

-Govt has given incentives to the tune of 120 cr for drone industry. Drone industry will receive exceptional treatment

-Benefits under Advanced Chemical Cell PLI and FAME schemes to continue. 

-Auto sector will generate employment for over 7 lakh people through this PLI scheme.

- 26,538 crore is the total outlay of the auto PLI scheme. 120 crore to be allocated for drone PLI scheme, said Union Minister Anurag Thakur.

-Cabinet has approved production-linked incentive scheme for auto, auto components and drones industries. 

-Last year, the government had announced the scheme for the automobile and auto components sector with an outlay of 57,043 crore, earmarked for five years

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Read Entire Article