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Loss of over Rs 43k cr due to relief to telcos in 1999

Last Updated: Wednesday, November 23, 2011 - 20:38

New Delhi: The relief given to telecom companies by the BJP-led NDA government in 1999 by moving them from fixed licence fee regime to revenue-sharing model caused a loss of over Rs 43,523 crore by way of lower collection of licence fee, Parliament was informed on Wednesday.
In a written reply in Lok Sabha, Minister of State for Communication and IT Milind Deora said as per fixed licence fee, operators would have paid Rs 58,354.62 crore but fee collection from them over their licence period has been Rs 14,830.70 crore due to migration package.

Thus the impact on licence fee collection due to Migration Package offered vide NTP (New Telecom Policy) 99 for mobile as well as basic service providers is Rs 43,523.92 crore.
"The Migration Package was a one-time measure to migrate the Licences to NTP-99 Regime. Subsequent to this, a new category of licence viz. UAS Licence was introduced and most of the basic and CMTS licences except BSNL and MTNL migrated to UAS License," Deora said.
Unified Access Service Licenses (UASL) facilitated telecom operators to provide all telecom services by getting a single licence instead of obtaining different kind of licences for various telecom services like mobile phone, landline phone, STD, ISD, internet and others.
The Comptroller and Auditor General (CAG) in its report of 2000 had also noted that telecom companies having cellular mobile and basic telephone licences in metros and other circles defaulted in making payment of licence fee to the government, leading to mounting dues.
"On one side private licensees repeatedly violated the conditions of license agreements. On the other government granted concessions after concessions in relaxation of tender conditions decided through open competitive bidding," CAG report had said.


First Published: Wednesday, November 23, 2011 - 20:38
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