Govt slashes bank guarantees for telecos, 100 pc FDI through automatic route notified
Govt also offers up to 25 pc concession in MV tax for discarding Old Vehicles
Road Transport and Highways Ministry has proposed a system of incentives to nudge vehicle owners to get rid of their old and polluting vehicles.
“In line with the above, the Ministry has issued a GSR Notification on Oct. 5, in the Gazette of India, which shall come into force from the 1st day of April, 2022,” an official release said
New Delhi, Oct 6 (UNI) In line with decisions of the Union Cabinet, the Department of Telecommunications (DoT) on Wednesday issued notifications slashing the bank guarantee requirements for telecom operators by as much as 80 per cent.
As per the notification issued by the department, the performance bank guarantee has been reduced to a maximum of Rs 44 crore for each service for the telecom license from Rs 220 crore earlier.
Similarly, the financial bank guarantee for the operators has been cut to Rs 8.8 crore for each circle from Rs 44 crore required under previous requirement.
The notification stated that the rationalisation of bank guarantees will not be applicable in cases where bank guarantee is furnished or required due to a court order.
The amended bank guarantee would also not apply to companies which are under corporate insolvency resolution process (CIRP) or related litigation.
“In case of multiple bank guarantees for all the licenses/authorizations held the licensee shall have an option to submit bank guarantees centrally at one place instead of Licensed Service Areas (LSAs) wise,” said the notification amending the previous license norms.
The amended license norms would help companies like Airtel and Vodafone as it will result in improved cash flows.
The Department for Promotion of Industry and Internal Trade (DPIIT) on Wednesday issued a press note for 100 per cent FDI in the telecom sector.
The Union Cabinet had last month approved a number of structural and process reforms in the telecom sector.
“These are expected to protect and generate employment opportunities, promote healthy competition, protect interests of consumers, infuse liquidity, encourage investment and reduce regulatory burden on Telecom Service Providers (TSPs),” an official statement had said.
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