In a significant move on Wednesday, 15 September, the Centre 'top-upped' the telcos by a providing a four-year moratorium on their due payments as part of its latests reforms.
The move comes as a big relief to the financially starved industry, especially to Vodafone Idea and Bharti Airtel – two of the hardest hit telcos.
In short, these reforms provide the telcos four more years to pay their adjusted gross revenue (AGR) and spectrum dues and will kick in from 1 October.
While the telcos will have to pay interest on the four year deferral of payments, they have the option to convert the due amount into equity at the end of four years.