Taxpayers money won't be used to bail out private telecom companies: MoS Sanjay Dhotre

New Delhi: There is no plan currently under consideration to bail out private telecom operators that are under financial loss, Parliament was informed on March 17. Also, no proposal is under consideration at present on the allocation of 5G spectrum to state-owned Bharat Sanchar Nigam Ltd, Minister of State for Communications Sanjay Dhotre said in a written reply to the Lok Sabha.

“At present, there is no plan under consideration to bail out private Telecom Service Providers (TSPs) which are under financial loss,” Dhotre said replying to a question on whether the government has any plans for bailing out such telcos.

Dhotre said while the government has not given an exemption to the operators on Adjusted Gross Revenue (AGR) related dues, the Telecom Department, following a Cabinet nod, had filed an application seeking the permission of the Supreme Court to allow telcos to make the payment of the AGR dues in 20 years’ time (or less if they opt).

“…Supreme Court has partially allowed the Miscellaneous Application permitting Telecom Service Providers to make the payment in 10 annual equal instalments. The Hon’ble Supreme Court vide its order dated 01.09.2020 has also given several directions towards the implementation of the judgment,” Dhotre noted.

The Department of Telecom as well as operators are bound by the orders and direction of the Supreme Court, he added.