Slap from one hand, pat from another! Govt refuses financial help for telcos but extends helping hand

The telecom department will most likely reject the demand raised by Reliance Communications for a financial package to bail out the debt burdened telecom sector. However, it can extend a helping hand to the industry in terms of other reliefs like extended tenures for spectrum payments etc.

As per officials from the Department of Telecommunications (DoT), meetings with carriers including Bharti Airtel, Vodafone India, Idea Cellular, Aircel, Tata Teleservices and Reliance Communications have been held over the past two weeks regarding the issue of debts in the telecom sector.

DoT officials are trying to understand what all financial troubles telcos have been going through before they enter into a formal meeting with the inter-ministerial group (IMG) that the cabinet secretary has set up to begin on June 12.

"The first formal meeting of the IMG is yet to take place and the issues of the telecom sector will be taken up at that forum," a source told ET.

The IMG consists of four members from DoT and one each from the departments of economic affairs, revenue and finance. After holding meetings, the group is required to submit its recommendations to the central government within three months.