New Delhi: The Union Cabinet is expected to have cleared a proposal to rescind penalties along with most of the interest sought from central and state government departments, including the police, defence and Prasar Bharti, on delayed payment of spectrum charges, officials said. Such amounts run into a few lakh-crore rupees.
The proposal before the Cabinet was to waive roughly 95% of the interest dues plus the penalties, officials said, speaking on the condition of anonymity since the government has not yet made the decision public. "The departments now need to pay the principal amount and a 5% interest on it and the rest of the dues are waived," one of them said.
The Cabinet considered the proposal Wednesday, they said. The government's press briefing after the Cabinet meeting did not mention any such decision.
The Ministry of Information and Broadcasting, Department of Space (DoS) and the railways are among the top defaulters.
Piled Up Penalties
The government’s press briefing after the Cabinet meeting did not mention any such decision.
The Ministry of Information and Broadcasting, Department of Space (DoS) and the railways are among the top defaulters. Some of them have dues pending from 2004 and with compound interest levied annually, the figures have swelled severalfold, the officials said.
This waiver is meant only for central and state government departments and not public sector units or private players, they said. They had been allotted spectrum administratively by the Department of Telecommunications (DoT).
These ministries and departments have to pay some charges for using the airwaves. When they default, a late fee of 24% of the amount is levied, with interest compounded annually. Even where the entities had paid the principal but with a delay, the late fee was levied and the amount got compounded annually, an official explained.
Prasar Bharti under the information and broadcasting ministry and defence departments have accumulated large amounts, said another official. “Prasar Bharti utilises a good quantum of spectrum for its broadcasting operations while defence is a big user of spectrum,” the official said. “Similarly, DoS uses spectrum for its satellite operations and the railways has been allocated spectrum, including in the premium 700 MHz band, for its signalling and security operations.”
Thousands of MHz of airwaves in different bands have been given to these entities for their use, the official added.
The Cabinet had earlier cleared a proposal to refarm nearly 1100 MHz of spectrum across several bands, estimated to be worth around `5 lakh crore, which could then be sold in auctions in the coming few years.
Through refarming, frequencies given to these departments will be shifted or realigned and whatever spectrum can be spared, that will be sold through an auction. A committee of secretaries late last year had given the go-ahead to refarm spectrum in various bands.
The telecom industry has also been seeking more mid-band spectrum — 3.5 GHz to 6 GHz — for 5G and 6G use in the coming years.
The DoT too believes there is a need to provide more airwaves, especially in the mid-band and some premium lower bands, for upgrading the 5G technology and introducing 6G, which is expected to be launched by 2030. Legacy users such as the defence department and DoS currently use most of such spectrum, and they may be shifted to other frequencies.
The proposal before the Cabinet was to waive roughly 95% of the interest dues plus the penalties, officials said, speaking on the condition of anonymity since the government has not yet made the decision public. "The departments now need to pay the principal amount and a 5% interest on it and the rest of the dues are waived," one of them said.
The Cabinet considered the proposal Wednesday, they said. The government's press briefing after the Cabinet meeting did not mention any such decision.
The Ministry of Information and Broadcasting, Department of Space (DoS) and the railways are among the top defaulters.
Piled Up Penalties
The government’s press briefing after the Cabinet meeting did not mention any such decision.
The Ministry of Information and Broadcasting, Department of Space (DoS) and the railways are among the top defaulters. Some of them have dues pending from 2004 and with compound interest levied annually, the figures have swelled severalfold, the officials said.
This waiver is meant only for central and state government departments and not public sector units or private players, they said. They had been allotted spectrum administratively by the Department of Telecommunications (DoT).
These ministries and departments have to pay some charges for using the airwaves. When they default, a late fee of 24% of the amount is levied, with interest compounded annually. Even where the entities had paid the principal but with a delay, the late fee was levied and the amount got compounded annually, an official explained.
Prasar Bharti under the information and broadcasting ministry and defence departments have accumulated large amounts, said another official. “Prasar Bharti utilises a good quantum of spectrum for its broadcasting operations while defence is a big user of spectrum,” the official said. “Similarly, DoS uses spectrum for its satellite operations and the railways has been allocated spectrum, including in the premium 700 MHz band, for its signalling and security operations.”
Thousands of MHz of airwaves in different bands have been given to these entities for their use, the official added.
The Cabinet had earlier cleared a proposal to refarm nearly 1100 MHz of spectrum across several bands, estimated to be worth around `5 lakh crore, which could then be sold in auctions in the coming few years.
Through refarming, frequencies given to these departments will be shifted or realigned and whatever spectrum can be spared, that will be sold through an auction. A committee of secretaries late last year had given the go-ahead to refarm spectrum in various bands.
The telecom industry has also been seeking more mid-band spectrum — 3.5 GHz to 6 GHz — for 5G and 6G use in the coming years.
The DoT too believes there is a need to provide more airwaves, especially in the mid-band and some premium lower bands, for upgrading the 5G technology and introducing 6G, which is expected to be launched by 2030. Legacy users such as the defence department and DoS currently use most of such spectrum, and they may be shifted to other frequencies.
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