Any cash flow relief will significantly improve telcos' health: Analyst on telecom package

Any immediate cash flow relief to the telecom sector will significantly improve the financial health and pave the way for the 5G auction, a senior analyst at Deloitte India said on Wednesday.

The Union Cabinet has approved a package for the telecom sector, a senior DoT official said.

The package is aimed at giving relief to companies, such as Vodafone Idea, that have to pay thousands of crores in unprovisioned past statutory dues.


The wide set of measures proposed entail reforms for the ailing sector by way of granting a moratorium on unpaid dues, redefining AGR prospectively and cut in spectrum usage charges.

The exact details of measures that have been approved, could not be ascertained immediately.

Telecom Minister Ashwini Vaishnaw is slated to brief the media shortly on decisions taken by the Union Cabinet at its meeting held on Wednesday.

When contacted, Peeyush Vaish, Partner and Telecom Sector Leader, Deloitte India told PTI, "Any immediate cash flow relief to the telecom sector will significantly improve the financial health and pave the way for 5G auction".