<p>In a big reform for the telecom sector, the Centre Wednesday allowed 100% foreign direct investment (FDI) through automatic route in place of 49% at present. The rule will, however, not apply to countries that share a land border with India.</p>.<p>Countries that share a border with India include Pakistan, Bangladesh, China, Nepal, Myanmar and Bhutan. The government had imposed regulations on foreign direct investments originating from countries that share a land border with India to thwart any hostile takeover of domestic businesses in April 2020.</p>.<p>The government also approved a four-year moratorium on payment of statutory dues by telecom companies, a move that comes as a relief to ailing telecom operators like Vodafone Idea that have to pay thousands of crores of rupees of the past statutory dues.</p>.<p>Along with that, the government also rationalised the definition of adjusted gross revenue (AGR) by excluding non-telecom revenues of telecom firms. The AGR issue was the major reason for stress in the telecom sector.</p>.<p><strong>Read: <a href="https://www.deccanherald.com/business/business-news/centre-approves-rs-26058-cr-pli-scheme-for-auto-drone-sectors-1030627.html">Centre approves Rs 26,058 cr PLI scheme for auto, drone sectors</a></strong></p>.<p>Telecom shares jumped up to 5% after the relief package was approved. Bharti Airtel jumped 4.53% and Vodafone Idea rose 2.76% on the BSE. Shares of Tata Communications gained 1.38%.</p>.<p>Briefing reporters on the Cabinet decision, Telcom minister Ashwini Vaishnaw said these measures are expected to ease the cash flow issues being faced by some players in the industry.</p>.<p>He said the moratorium will facilitate capital investment cycle and de-stress the balance sheet of the telecom sector. It will also infuse healthy competition in the sector.</p>.<p>The reforms are expected to boost proliferation and penetration of broadband and telecom connectivity, the minister said after a huge surge in data consumption, online education, work from home, interpersonal connect through social media, virtual meetings amid the Covid pandemic.</p>.<p>The package is also expected to boost 4G proliferation, infuse liquidity and create an enabling environment for investment in 5G networks.</p>.<p>In another major decision, a telecom firm can hold spectrum for 30 years instead of the current 20. Spectrum can also be surrendered after 10 years in case of any technology change.</p>.<p><strong>Check out DH's latest videos:</strong></p>
<p>In a big reform for the telecom sector, the Centre Wednesday allowed 100% foreign direct investment (FDI) through automatic route in place of 49% at present. The rule will, however, not apply to countries that share a land border with India.</p>.<p>Countries that share a border with India include Pakistan, Bangladesh, China, Nepal, Myanmar and Bhutan. The government had imposed regulations on foreign direct investments originating from countries that share a land border with India to thwart any hostile takeover of domestic businesses in April 2020.</p>.<p>The government also approved a four-year moratorium on payment of statutory dues by telecom companies, a move that comes as a relief to ailing telecom operators like Vodafone Idea that have to pay thousands of crores of rupees of the past statutory dues.</p>.<p>Along with that, the government also rationalised the definition of adjusted gross revenue (AGR) by excluding non-telecom revenues of telecom firms. The AGR issue was the major reason for stress in the telecom sector.</p>.<p><strong>Read: <a href="https://www.deccanherald.com/business/business-news/centre-approves-rs-26058-cr-pli-scheme-for-auto-drone-sectors-1030627.html">Centre approves Rs 26,058 cr PLI scheme for auto, drone sectors</a></strong></p>.<p>Telecom shares jumped up to 5% after the relief package was approved. Bharti Airtel jumped 4.53% and Vodafone Idea rose 2.76% on the BSE. Shares of Tata Communications gained 1.38%.</p>.<p>Briefing reporters on the Cabinet decision, Telcom minister Ashwini Vaishnaw said these measures are expected to ease the cash flow issues being faced by some players in the industry.</p>.<p>He said the moratorium will facilitate capital investment cycle and de-stress the balance sheet of the telecom sector. It will also infuse healthy competition in the sector.</p>.<p>The reforms are expected to boost proliferation and penetration of broadband and telecom connectivity, the minister said after a huge surge in data consumption, online education, work from home, interpersonal connect through social media, virtual meetings amid the Covid pandemic.</p>.<p>The package is also expected to boost 4G proliferation, infuse liquidity and create an enabling environment for investment in 5G networks.</p>.<p>In another major decision, a telecom firm can hold spectrum for 30 years instead of the current 20. Spectrum can also be surrendered after 10 years in case of any technology change.</p>.<p><strong>Check out DH's latest videos:</strong></p>
