HEADLINES
JOBS
COM:PORT
POLICY POLICE
ARCHIVES

More concessions for telecom likely

Overall, the recommendations call for easier provision of concessions, infrastructure status to all value-added services and capital restructuring of the telecom public sector manufacturers.

T O D A Y

• A card for all seasons • CMC promotes Java • NIIT global revenues • STP exports up • More sops for telecom

The note calls for letting public sector manufacturers enter strategic deals with foreign firms in the business since such moves could find Indian firms being better prepared to handle multinational competition. Such moves could help India become a manufacturing base of such equipment once the companies were revived, restructured and funded for capital restructuring, the note suggested.

The note also called for PSUs being allowed to provide basic services in circles where no bids had been received, citing the consortium formed by Mahanagar Telephone Nigam Limited, the Telecommunications Consultants India Ltd and Indian Telephone Industries.

But it said tax holidays, higher limits on external commercial borrowing and rebates on subscription to shares/debentures were necessary to better the consortium's chances. It also called for funding from sources like the World Band and the Asian Development Bank.

Licences should be issued to operators on a case-by-case basis, with exemptions being granted more freely to encourage private participation in the telecom sector. It said manufactures should be given the same concessions available to the telecom service sector and be included in the list of infrastructure industries, the note said, pointing out that the current tariff structure encouraged the traders more than the makers.

The note also sought manufactures of basic and value-added services be given deemed export status since such products can be imported at a reduced duty of 20 per cent.

-Compiled from the Indian media

Tell us what you think of this story