In a landmark move to ease financial pressure on critical government departments, the Union Cabinet has reportedly approved a one-time waiver on over ₹6 lakh crore in spectrum dues, covering penalties and nearly all interest charges. The relief applies to central and state departments such as Defence, Railways, Space, and Broadcasting, but excludes PSUs and private telecom operators, according to multiple reports.
📡 What the Waiver Covers
- Scope: Dues dating back to 2004, accumulated through 24% annual compound interest and penalties
- New Terms: Departments will now pay only the principal amount plus 5% interest
- Excluded Entities: Public sector units (PSUs) and private telecom companies are not eligible
The spectrum was originally administratively allocated by the Department of Telecommunications (DoT) for essential services like defence communications, railway signalling, satellite operations, and public broadcasting.
🏛️ Top Defaulters
- Ministry of Defence
- Department of Space (DoS)
- Indian Railways
- Ministry of Information & Broadcasting, including Prasar Bharati
These departments had long argued that commercial spectrum charges were unfair, given their non-revenue-generating, public-interest operations.
🔄 Strategic Context: Spectrum Refarming
The waiver aligns with the government’s broader plan to refarm 1,100 MHz of underutilized spectrum, valued at ₹5 lakh crore, for future 5G and 6G auctions. The DoT is working to shift legacy users to alternate bands, freeing up mid-band spectrum (3.5–6 GHz) for commercial telecom use.
“This is a long-overdue rationalisation that balances fiscal prudence with national interest,” said a senior official familiar with the matter.
📌 Why It Matters
- Reduces fiscal burden on key ministries
- Unlocks valuable spectrum for next-gen telecom services
- Signals policy shift toward efficient spectrum management
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