Cabinet clears 100% FDI in telecom sector, announces a series of major reforms

Telcos get a four-year moratorium on payment of spectrum dues in a slew of measures for structural and process reforms

Cabinet clears 100% FDI in telecom sector, announces a series of major reforms
 Union Minister Communications and Electronics & Information Technology, Ashwini Vaishnaw and Minister of Information and Broadcasting, Anurag Thakur briefing the media on Cabinet decisions in New Delhi, on Wednesday, Sept. 15, 2021. Photograph by : Rajeev Bhatt

The Union Cabinet, chaired by the Prime Minister Narendra Modi, on Sept 15 approved a four-year moratorium on payment of the spectrum dues by telecom companies as part of a relief package for the struggling sector, Telecom Minister Aswini Vaishnaw announced. He said the government has decided to allow 100% foreign direct investment (FDI) in the sector.

 Union Minister Communications and Electronics & Information Technology, Ashwini Vaishnaw and Minister of Information and Broadcasting, Anurag Thakur briefing the media on Cabinet decisions in New Delhi, on Wednesday, Sept. 15, 2021. Photograph by : Rajeev Bhatt

He also announced a number of structural and process reforms in the telecom sector that are expected to protect and generate employment opportunities. The reforms will also help promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs), said the Minister.