No Plan Under Consideration to Bailout Pvt Telecoms Under Financial Loss: Sanjay Dhotre

Network Speed

Union Minister of State for Communications Sanjay Dhotre said in a written reply in the Lok Sabha that at present there is no proposal to allocate 5G spectrum to the government telecom company Bharat Sanchar Nigam Limited (BSNL).

The central government has dismissed reports of private telecom companies getting bailouts. According to the information given to Parliament, at present, the government is currently not considering the bailout plan of the telecom companies. Also, Union Minister of State for Communications Sanjay Dhotre said in a written reply in the Lok Sabha that at present, there is no proposal to allocate 5G spectrum to the government telecom company Bharat Sanchar Nigam Limited (BSNL).

bailout

No Plan for bailout package

When Dhotre was asked whether the government had any plan to bailout telecom companies? At this, Dhotre refused to consider any bailout plans of private telecom service providers (TSPs), which are facing financial losses. Dhotre said that there will not be any exemption from the government on the outstanding gross revenue (AGR) dues to the telecom operators. The telecom department had filed a petition in the Supreme Court after a cabinet nod, demanding a 20-year outstanding AGR from telecom companies.

bailout

Payment to be made in 10 years

The Supreme Court has allowed telecom service providers to pay in 10 annual equal installments. Dhotre said that while considering the decision given by the Supreme Court on September 1 last year, he has given many guidelines regarding the implementation of the order. He said that the Department of Telecom and operators are completely bound by the order and guidelines of the Supreme Court.

bailout

What is a bailout?

In fact, when some public companies or financial institutions such as banks are going through a huge loss, some amount is given by the government to save the banks or other companies. This is known as the bailout package.

Follow PhoneTalk for the latest Tech News, also keep up with us on Twitter, and Facebook.

Lingraj Sahu
Lingraj is one of the youngest members of PhoneTalk, and a recent tech geek convert. When he's not churning out articles, you’ll find him watching sports, exploring new places, and listening to music.