The DoT has amended licence norms to rationalise the rate of interest for delayed fee of licence payment, a transfer that’s anticipated to ease monetary burden on the telecom sector and promote ease of doing enterprise.

The division will now cost 2% curiosity above the one-year marginal price of lending fee (MCLR) of State Financial institution of India for delay in fee of licence charges or another statutory dues and the curiosity will probably be compounded yearly.

Earlier, telecom companies had been required to pay 4% curiosity above the one-year MCLR of SBI and the curiosity was compounded month-to-month.

“Any delay in fee of licence payment or another dues payable below the licence past the stipulated interval will entice curiosity at a fee which will probably be 2 per cent above the one- 12 months MCLR of SBI current as on the start of the monetary 12 months (specifically 1st April) in respect of the licence charges or another dues pertaining to the stated monetary 12 months,” the modification stated.

The Division of Telecom (DoT) has additionally eliminated the licence clause below which telcos had been charged a penalty equal to 50 per cent of the brief fee they made for licence payment. The penalty was imposed if brief fee was greater than 10 per cent of the payable licence charges.

The modification has come into impact from October 1. The transfer is a part of telecom reforms introduced by the federal government in September 2021.

The outdated guidelines had been one of many fundamental causes for pushing incumbent gamers into stress after the Supreme Court docket’s verdict on adjusted gross income that upheld the federal government stand and requested telecom operators to pay ₹1.47 lakh crore statutory dues.

The essential dues had been round 26% whereas 74% element of the overall demand bought collected on account of curiosity on this quantity, penalty and curiosity on penalty.

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Telecom business physique COAI stated the transfer will ease monetary stress on the sector and promote ease of doing enterprise.

“We admire the step of rationalization of rates of interest on delayed fee of License Charge (LF) and another dues below the licence, removing of penalty and curiosity on penalty. We welcome this step in direction of easing the monetary stress and selling ease of doing enterprise within the telecom sector,” COAI Director Normal SP Kochhar stated.

This story has been printed from a wire company feed with out modifications to the textual content. Solely the headline has been modified.