Scindia on Telecom Relief: Sector-Wide Approach over Company-Specific Solutions

Union Minister Jyotiraditya Scindia emphasized that any telecom relief on bank guarantees will be sector-wide, not targeting specific companies. While Vodafone Idea seeks waiver, no final decision has been made. He highlighted BSNL's government-owned status and its unique indigenous developments amid receiving substantial revival packages.

In a statement to reporters, Union Communications Minister Jyotiraditya Scindia clarified on Tuesday that any relief measures related to bank guarantees for spectrum allocation will be applicable to the entire telecom sector, rather than targeting individual companies. This comes as Vodafone Idea seeks government support amid financial strains. "I don't think any step the government takes is going to be company-specific, because it's a sectoral step," Scindia remarked.

Addressing queries about Bharat Sanchar Nigam Limited (BSNL), Scindia underscored that the government-owned company has received multiple revival packages, distinguishing its position from private telecom entities. He highlighted that BSNL has developed an indigenous stack, marking a significant achievement on both national and global stages. Since October 2019, BSNL has benefitted from three substantial government revival packages, the first amounting to Rs 69,000 crore.

The subsequent packages approved in July 2022 and June 2023, worth Rs 1.64 lakh crore and Rs 89,047 crore respectively, further bolster BSNL through capital infusion, spectrum allocation, and strategic mergers. Scindia also pointed out the significant governmental support provided to India's telecom sector in recent years, emphasizing the necessity of maintaining multiple players for consumer choice and market health.

(With inputs from agencies.)