Telecom industry urges government to facilitate funding at lower interest rates; seeks reduction in levies

New Delhi: Telecom industry on Monday urged the federal government to facilitate funding for telecom corporations at decrease rates of interest to assist them scale back capital prices. Representatives from the business met telecom ministry officers to speak their recommendations to assist the debt-ridden sector. The DoT, which has given time until Tuesday to ship in written suggestions, will compile these calls for and ship them to the Finance Ministry for consideration within the forthcoming Budget.

According to a senior authorities official, most calls for made have been on related traces as earlier than, together with discount in Universal Service Obligation Fund (USOF) levy and licence charges.

The official added that one of many suggestions was associated to enter line credit score.

Besides, the business has additionally sought facilitation of funding at decrease rates of interest to telecom corporations, removing of GST on licence charge, spectrum utilization fees (SUC) and on fee of spectrum fees, and refund of collected enter tax credit score, the official mentioned.

They have additionally urged that telecom towers be included in definition of plant and equipment for enter tax credit score, and additional promotion of Make in India by establishing a devoted fund that can be utilized by purchaser of telecom tools.

One of the representatives current within the assembly mentioned the business has requested establishing of a working group with stakeholders from the telecom ministry, Telecom Regulatory Authority of India (Trai) and the business, which can work on making ready pointers for adopting the precept of enter line credit score.

The consultant mentioned that the telecom business is capital intensive and must generate funds from home sources at reasonably priced charges.

“We have requested the government to facilitate funding at lower rate of interest so as to plough more funds for network upgradation, maintenance and expansion,” one other consultant mentioned.

Other suggestions included discount in USOF contribution to three per cent, and license charge to 1 per cent of adjusted gross income (AGR).

The business additionally sought that the fee of regulatory levy must be exempted from tax below GST. SR SR BAL

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