The cabinet also approved a proposal to postpone the payment of spectrum instalment for two years while giving relief to telecom companies struggling with the financial crisis. Giving information about the decision, Finance Minister Nirmala Sitharaman said, Telecom companies are exempted from spectrum instalment payments for two years 2020-21 and 2021-22. According to sources, the decision of the government will give a relief of Rs 42,000 crore to telecom company Bharti Airtel, Vodafone Idea and Reliance Jio.
Earlier, the Supreme Court had given a shock to Vodafone Idea and Airtel. The court had said that these companies would have to pay adjusted gross revenue (AGR) after which the telecom companies suffered a major setback. But now Vodafone Idea's AGR liability of Rs 44,200 crore may increase further.
Could increase in liability
This AGR related liability could have increased. The brokerage firm said that the company has estimated the AGR principal amount to be Rs 11,100 crore based on the notice received from the telecom department. Apart from this, the company itself has estimated the last 2-3 years. According to brokerage firm Credit Suisse, Vodafone Idea's AGR related liability could be Rs 54,200 crore.
The company lost Rs 50,921 crore
Vodafone Idea reported a loss of Rs 50,921 crore in the second quarter. Earlier, the company had a loss of Rs 4,947 crore in the second quarter of last year. This is the largest quarterly loss yet in India's corporate history.
Corporate tax reduction bill approved, economy will gain momentum
The Cabinet approved the bill replacing the ordinance to reduce the corporate tax to 22 per cent to speed up the economy. The bill is likely to be passed in the winter session of Parliament itself. Finance Minister Nirmala Sitharaman had announced on September 20 to reduce the corporate tax to 22 percent to provide relief to domestic companies.
Also Read:
Biggest decision of Modi cabinet meeting, 5 big government companies will be sold
Retail onion prices fall, exports may be banned till February
Sugar production not yet started in 64% of mills; cost may increase this season
Sensex, Nifty Open Lower Today, read details