NEW DELHI, Nov. 21 (Xinhua) -- The Cellular Operators Association of India (COAI) on Thursday welcomed the government's relaxation to the telecom sector in the form of a two-year relief on payment of spectrum dues.
COAI's Director General Rajan Mathews said that his association welcomed the fact that the government "recognized" the financial distress of the telecom sector and provided relief in the form of deferments of spectrum payments.
"We are very thankful to our Telecom Minister Ravi Shankar Prasad and the Department of Telecommunications (DoT) for supporting us and pushing forward our request to the Finance Minister for action. This will certainly provide some immediate cash flow relief to the industry," said Mathews in a statement.
He, however, expressed concern over the fact that the high level of levies and taxes continued to be a challenge for the telecom sector.
"The tele companies pay up to 30 percent of their revenues to the government, by way of various levies and taxes, which is an enormous burden on the industry," he added.
On Wednesday, in a breather for financially-stressed telecom operators - Airtel and Vodafone-Idea, the government allowed them to defer payments for spectrum purchases by up to two years.
A statement issued by the government said, "Deferment of spectrum auction installments will ease the cash outflow of the stressed telecom service providers and facilitate payment of statutory liabilities and interest on bank loans."
Last month the country's apex court, the Supreme Court of India, ordered the two companies to pay at least 92,000 crore Indian Rupees (13 billion U.S. dollars) as past dues to the government within three months.
Following the apex court's order, the two companies a couple of days ago announced to increase tariffs.
