Welcoming the government’s decision to defer receipt of spectrum auction installments due from telecom service providers for years 2020-2021 & 2021-2022, India Inc has said that the move will provide headroom to the debt-laden telecom sector, generate employment opportunities for the potential workforce, drive consumer demand sentiments in the economy, provide further impetus and pave way to achieve $5 trillion economy going forward. The government doled out an Rs 42,000 crore relief to telecom companies after it agreed not to take any payments for spectrum they use for the next two years.
PHD Chamber of Commerce and Industry President D K Aggarwal said that this is a great breakthrough in the economic reform system and will have a positive impact on the growth and development of telecom sector and the economy as a whole. He also pointed out that deferment of spectrum auction installments will provide a pronounced relief to stressed telecom service providers leading to their continuous operations, ease their cash outflow and give them window to make payments for statutory liabilities and interest on bank loans. Besides, Ficci President Sandip Somany stated the move should provide some headroom to the telecom sector in the country as it is seeing a lot of stress.
Describing the strategic sale of central public sector enterprises (CPSEs) as a major reform, Assocham President BK Goenka said the decision reflects the clear mind set of the government about steadily moving out of businesses. He also said the underlying thinking is that the government has no business to be in business. He added that it is a welcome and a major policy change.