Center's big gift to the telecom sector: 100% foreign investment will be possible without government approval, KYC form will no longer have to be filled for prepaid to postpaid connections

In the cabinet meeting chaired by Prime Minister Narendra Modi today, several major decisions were taken in the field of telecom and auto sectors. The central government has approved a relief package for the telecom sector. Apart from this, 100% FDI has also been approved in the telecom sector under the automatic route. It has been decided to make 9 major structural changes in this sector. The government has also approved a PLI scheme of Rs 26,058 crore for the auto and drone sector. Out of this, Rs 25,938 crore will be given to the automobile sector. 120 crores will be given to the drone industry.

Big relief package approved for telecom sector

The central government has also approved a relief package for the telecom sector. Union Minister Ashwini Vaishnav said that the government has decided to make 9 major structural changes in the telecom sector. By changing the definition of AGR, non-telecom revenue will be excluded from it. The interest in AGR has been reduced to 2% per annum. Apart from this, the penalty imposed on it has also been abolished. This will give a big relief to the telecom companies.

Change in KYC rules

Union Minister Ashwini Vaishnav said that 100% FDI has been approved in the telecom sector under the automatic route. The KYC process will now be completed online. Now only self KYC will have to be done while taking a new SIM. Now no form will have to be filled in changing from postpaid to prepaid or prepaid to postpaid. Digital KYC will be valid for this. The documents given at the time of taking the SIM, which is in the warehouse, will also be digitized.

The 4-year moratorium for all dues

Vaishnav said that the telecom sector will be given a moratorium of 4 years for all the dues. That is, they can defer their dues for 4 years, but they will have to pay interest on the outstanding during this period. This arrangement will not be applicable on the last date but from now on. Apart from this, the spectrum will now be auctioned for 30 years instead of 20 years.

Easy to set up tower

The process of setting up the tower took the approval of many departments. Now self-approval will work. Only one portal will get approval from DoT. The license raj has been abolished from today. The government has approved a PLI scheme of Rs 26,058 crore for the auto and drone sector.

7.6 lakh people will get jobs

Union Minister Anurag Thakur said that this decision of the cabinet will increase jobs in the auto sector. According to government estimates, 7.6 lakh people will get jobs. This will boost the production of electric vehicles in the country. He said that this will bring a new investment of Rs 47,500 crore in the next 5 years in the auto sector.

Who will get the benefit of the PLI scheme?

The benefit of the PLI scheme will be available to only those companies which comply with the terms of revenue and investment. Four wheeler companies will have to invest at least Rs 2,000 crore in the next 5 years. At the same time, an investment of Rs 2,000 crore will have to be made for two and three-wheelers.

What is PLI Scheme?

According to this scheme, the government will give incentives to the companies to produce extra. The government aims to encourage them to export more. The objective of the PLI scheme is to encourage investors to create an environment of competition in the country.