Budget 2019: Here's What Ravi Shankar Prasad Suggest FM Sitharaman To Revive Telecom Sector

Union Communication Minister Ravi Shankar Prasad has pitched the Finance Ministry to consider rolling out series of relief measures for the beleaguered telecom industry.

Telecom sector has been burdened with high debt and increased costs. (Image: PTI)

Budget 2019: As the Modi government 2.0 is hours away from tabling its maiden Budget after returning to power, Union Communication Minister Ravi Shankar Prasad has pitched the Finance Ministry to consider rolling out series of relief measures for the beleaguered telecom industry. Extending its suggestion to Finance Minister Nirmala Sitharaman's office, Prasad suggested on lowering the licence fee in the upcoming Budget session. As per reports, the Union Minister has also sought a reduction in goods and services tax (GST) rate from 18 per cent to 12 per cent. Though Prasad asserted that lowering the GST rate would reduce the monthly mobile bill of consumers, but it is also worth noting that a decision on the same can be taken in the GST Council which consists of state and Union Finance Ministers. In a letter to FM Sitharaman, the senior Bharatiya Janata Party (BJP) leader urged for a reduction of licence fees by 25 per cent, Financial Express reported. Currently, telecom operators of the country pay 8 per cent licence fee of their adjusted gross revenue and if considered operator would end up paying a licence fee of 6 per cent thereby. Apart from this, the telecom industry is also seeking an immediate refund of Rs 30,000 crore blocked and delayed GST input credits owed to the mobile operators by the government. Some other suggestions given by the Union Telecom Minister include fast GST refunds to operators, extra fund allocation to revive ailing state-run telcos BSNL and MTNL, funds for domestic manufacturing of telecom equipment and a Rs 100 cr fund to initiative 5G network across the country. Addressing the financial crisis in state-run telcos BSNL and MTNL, Prasad had last month said that the government will take the issue with top priority. The sector has been going through stress for a long time, the minister said, adding that he would meet top telecom companies very soon. According to reports, the Union government has also set up a panel headed by Telecom Secretary Aruna Sundararajan to look at rationalisation and remove ambiguities in ease of doing business. “We will make a focused attempt on the revival of BSNL and MTNL and will move a Cabinet note on that very soon. The details are being worked out,” Prasad had said. Currently, the telecom sector has been burdened with high debt and increased costs. During the pre-Budget meeting with FM Sitharaman, even The Cellular Operators Association of India sought exemption from the levy of customs duty, IGST and service tax on Right Of Way permission granted by the center, state governments and regulatory authorities.