Telecom sector demands 'infrastructure' status

‘Infrastructure’ tag to enable the telecom sector access credit easier

PTI | November 24, 2011



Telecom operators associations -- COAI and AUSPI – on Wednesday met senior Finance Ministry officials to seek 'infrastructure' status for the sector, a tag which will make access to credit easier for them.

"Infrastructure status would provide us beneficial treatment (with regard to) infrastructure bonds and make financing easier," Rajan Mathew, who heads the Cellular Operators Association of India (COAI) told PTI after a pre-Budget consultation meeting with the Finance Ministry.

Besides income tax exemptions, an industry counted in the infrastructure sector, is allowed to borrow funds from overseas. They are even provided easy credit in the domestic banks.

The associations also discussed tax-related issues concerning the sector. "At present, no offset is being given to us for our investment in tower construction," Mathew said, adding that issues related to witholding taxes were also taken up. He said the officials assured the associations that the Finance Ministry would look into their demands.

The telecom industry has been demanding lowering of taxes on the sector, saying that the levies in India are among the highest in the world and with tariffs as low as 0.5 paise per second, the revenues are falling, affecting investments in the sector.

Telecom companies are paying up to 10 per cent annual licence fee, besides 8 per cent spectrum charges and contribution towards the Universal Service Obligation (USO) Fund as percentage of Adjusted Gross Revenue.

The National Telecom Policy (NTP) proposes to create a special purpose Telecom Finance Corporation as a vehicle to mobilise and channelise financing for telecom projects to facilitate investment in the sector.
 

Comments

 

Other News

Who checks the books?

I read about the news about the Coimbatore library over coffee this morning. On the face of it, the headline was about a political ‘war’ between the DMK and TVK. But what stayed with me was something much more important than the blame game behind what had transpired. A writer walking through

Development paradox: Falling poverty miracle and an inequality problem

India’s reduction in poverty over the past decade is a development achievement of considerable significance. The World Bank’s April 2026 ‘India Development Update’ estimates that the share of Indians living below the international extreme-poverty line of $3.00 per person per day i

In Arunachal, a river we call mother

In Arunachal Pradesh, the Siang is not just a river. For many of us, especially the Adi people, it is part of our family. Our grandparents fished in it. Children learned to swim in it. Our farms drink from it. When someone says a huge dam will be built on it, we do not hear the word "project".

A new retelling of the Mahabharata delves into key moments

In a time when every decision carries consequences and questions of ambition, power, loyalty, identity and moral choice continue to shape our lives, Dr. Arun Krishnan’s new book, ‘Mahakshana’ (Penguin India) offers a strikingly relevant retelling of the Mahabharata.  

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter