IMG to finalize its report on telecom by Sunday

The inter- ministerial group on telecom sector is likely to finalize its report on recommendations for the sector by August 27.

"The IMG will attempt to finalize its report by August 27. There is consensus on various issues, including increasing the time for deferred spectrum payment and shifting from PLR to MCLR for interest and penalty payments with regard to license fee and spectrum charges," an IMG member said.

IMG was constituted to suggest reforms in the telecom sector.

Meanwhile, sources close to the development said that "Big policy interventions may be not required as ups and down are part of any business and some green shoots are already visible."

Sources further added that "The panel is likely to give some relief in form of increased period for payment for spectrum loans to 16 years from the current 10 years."

The sector is in under financial stress due to increasing pressure after the entry Mukesh Ambani-led Reliance Jio with free services and cheap data offers to lead to massive fall in revenues and a debt of about Rs. 4.6 lakh crore.

To recall, Telecom Minister Manoj Sinha said that the Government will not shy away from taking the bold decisions. He said, "Once the report is with us, then based on the report we will take immediate action and Government is not scared to take bold decisions."

The sector is in under financial stress due to increasing pressure after the entry Mukesh Ambani-led Reliance Jio with free services and cheap data offers to lead to massive fall in revenues and a debt of about Rs. 4.6 lakh crore.