Modi Cabinet Decision:
A meeting of the Union Cabinet was held under the leadership of Prime Minister Narendra Modi on 15th September 2021. In which the PLI scheme has been approved for the auto and drone sector. Union Information and Sports Minister Anurag Thakur said that there is a provision of Rs 26,058 crore in this scheme. There will be an additional investment of Rs 47,500 crore in 5 years, employment opportunities will be generated to 7,60,000.
The Modi cabinet approved a relief package for the telecom sector facing the crisis. The Union Cabinet chaired by Prime Minister Narendra Modi, along with making the definition of Adjusted Gross Revenue (AGR) practical, includes a 4-year moratorium on AGR and approval for 100% FDI in the telecom sector through the automatic route.
After the meeting, Communications Minister Ashwini Vaishnav told in the press conference that the cabinet has approved 9 structural reforms and 5 processes for the telecom sector. These reforms will change the picture of the entire telecom sector. It has been decided to make the definition of AGR practical. All non-telecom revenue will be removed from AGR. 100% FDI has been allowed in the telecom sector through the automatic route.
Vaishnav said that a 4-year moratorium has been approved on the dues to the telecom service providers. Those who avail of this facility will have to pay interest at the rate of 2% along with MCLR on the moratorium amount. The penalty has been completely abolished. This will pave the way for huge investment in the telecom sector. The investment will create employment. It is more a question of employment than investment.
He said that earlier there used to be huge interest, interest, and penalty on license fee payment, spectrum user charges, and any other charges. Today it has been made practical. Instead of monthly compounding, now there will be annual compounding. Spectrum sharing has also been allowed and it will be completely free. He said that in future auctions, the tenure of the spectrum will be 30 years instead of 20 years. If someone takes spectrum and the business conditions or technology changes, he can surrender it after paying spectrum charges after the lock-in period of 10 years.