The Hindu Business Line : ‘No major sops for telecom sector’

New Delhi, Feb 29 Indian telecom sector expressed disappointment with the Budget proposals as none of its major demands have been addressed by the Finance Minister. The industry was expecting a reduction in the overall tax levied on the sector, especially the licence fee.

“We are very disappointed with the Budget because there is nothing for the telecom sector. The Finance Minister had announced last year that there will be a rationalisation of the tax structure. There is no action on that even after one year. Our other demands relating to Cenvat have also been not addressed,” said Mr T.V. Ramachandran, Director General, Cellular Operators Association of India.

Mr S.C. Khanna, Secretary General, Association of Unified Telecom Service Providers, said that the Finance Minister has not rewarded the sector for achieving phenomenal growth and the Government continued to heavily tax the industry.

However, telecom operators with infrastructure in the rural areas said that the focus of the Budget on rural India and inclusive growth is a positive one for the telecom sector. “This complements Bharti Airtel’s thrust on rural telecom penetration, as we are already present in over 3.20 lakh villages. Our rapid roll out in thousands of more villages in the coming year will get faster response due to the Government’s new policy. Focus on rural and small town connectivity is a very positive move. Increased outlay of Rs 450 crore for SWAN projects will help achieve greater penetration and will provide benefits of connectivity to smaller towns, villages,” said Mr Manoj Kohli, CEO & President, Bharti Airtel.

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