Heres What The Telecom Package Means: 5 Points

The relief package will provide relief to India's three major wireless carriers, i.e. Reliance Jio, Bharti Airtel and especially Vodafone Idea. Vodafone Idea, which was created from the merger of British telecom giant Vodafone's India unit and Birla's Idea Cellular, owes Rs 50,399.63 crore in statutory dues to the government.
The telecom sector was hit by the Supreme Court ruling last year, making it mandatory for Bharti Airtel and Vodafone Idea to pay their pending dues to the government. The telecom companies, including Bharti Airtel, Vodafone Idea and Reliance Communications, owed around Rs 92,000 crore to the government as license fee and Rs 41,000 crore as spectrum usage fees, according to the telecom department.
Earlier in 2016, the telecom sector saw an upheaval with the entry of Jio into the market. With its free voice and cut-price data plans, Jio pushed many rivals out of the market and led to the merger of Vodafone's India unit and Birla's Idea Cellular into Vodafone Idea.
Kumar Mangalam Birla, former chairman of Vodafone Idea, wrote to the cabinet secretary in July, offering his stake in Vodafone Idea to the government or any company approved by the government for free. And on August 4, Mr Birla resigned as the chairman of Vodafone Idea.
Earlier this week, banks led by State Bank of India called on the government to give Vodafone Idea more time to clear its tax dues.

GET REGULAR UPDATES

Here's What The Telecom Package Means: 5 Points