Page 330 - economic_survey_2021-2022

304 Economic Survey 2021-22

2percent instead of MCLR plus 4percent; interest compounded annually instead of monthly;
penalty and interest on penalty removed.
4. For Auctions held henceforth, no BGs will be required to secure instalment payments.

5. Spectrum Tenure: In future auctions, tenure of spectrum increased from 20 to 30 years.
6. Surrender of spectrum will be permitted after 10 years for spectrum acquired in the future
auctions.

7. No Spectrum Usage Charge (SUC) for spectrum acquired in future spectrum auctions.
8. Spectrum sharing encouraged- additional SUC of 0.5percent for spectrum sharing removed.

9. To encourage investment, 100 percent Foreign Direct Investment (FDI) under automatic route
has been permitted in Telecom Sector with all safeguards applying.

Procedural Reforms

10. Auction calendar fixed - Spectrum auctions to be normally held in the last quarter of every
financial year.
11. Ease of doing business promoted - cumbersome requirement of licenses under Customs
Notification for wireless equipment has been removed. This is replaced with self-declaration.

12. Know Your Customers (KYC) reforms: Self-KYC (App based) permitted. E-KYC rate revised
to only one rupee. Shifting from prepaid to post-paid and vice-versa does not require fresh
KYC.

13. Customer Acquisition Forms (CAF) in physical form will be replaced by digital storage of
data. This is a cost saving measure as it would allow the Telecom Service Providers (TSPs)
to release several warehouses that was being required to store 300-400 crore paper CAFs.
Further, with this measure, warehouse audit of CAF would also not be required.

14. Standing Advisory Committee on Radio Frequency Allocation (SACFA) clearance for telecom
towers eased. Department of Telecommunication will accept data on a portal, based on self-
declaration basis which is to be linked to portals of other Agencies (such as Civil Aviation).

Addressing Liquidity requirements of TSPs: The Government approved the following for
all the TSPs:
15. Moratorium/Deferment of up to four years in annual payments of dues arising out of the AGR
judgement, while protecting the Net Present Value (NPV) of the due amounts.
16. Moratorium/Deferment on due payments of spectrum purchased in past auctions (excluding
the auction of 2021) for up to four years with NPV protected at the interest rate stipulated in
the respective auctions.

17. Option to the TSPs to pay the principal and the interest amount arising due to the said
moratorium/ deferment of payment by way of equity.