Telecom Leaders Urge Critical Reforms for Enhanced Digital Connectivity

Digital Infrastructure Providers Association (DIPA) is advocating for reforms in power tariffs and tax structures to address challenges in the telecom sector. They propose industrial electricity rates, 24x7 power supply, and enhanced tax benefits. These measures aim to alleviate financial burdens and promote infrastructure growth.

The Digital Infrastructure Providers Association (DIPA) is urging the government to implement key reforms in power tariffs and tax structures to address pressing challenges faced by the telecom sector. The association pointed to an annual operational burden of Rs 5,000 crore caused by disparities in electricity tariffs alone.

DIPA recommends extending industrial electricity rates to telecom infrastructure across all states, a model already adopted by Maharashtra, Himachal Pradesh, and Haryana. They also stress the importance of a 24x7 power supply and expedited electricity connections as outlined in the Electricity Rights of Consumers Rules, 2020.

The association also calls for increased tax depreciation rates for telecom site batteries and suggests tax benefits for telecom towers classified as 'plant and machinery.' These measures aim to reduce financial strains and enhance investment in digital infrastructure. Security concerns over telecom infrastructure theft and vandalism, which impede 5G rollout plans, are among other priorities highlighted by DIPA.

(With inputs from agencies.)