The Indian Government has said that it has constituted an inter-ministerial panel to suggest policy reforms for the telecom sector, which is reeling under severe financial stress.
As per reports, the panel, comprising senior officials from the ministries of finance and telecom, will examine the systemic issues affecting viability and repayment capacity in the telecom sector and furnish recommendations for resolution of stressed assets at the earliest.
Commenting on the issue, a senior official told the media, "The panel will also recommend policy reforms and strategic interventions for the telecom sector which has a staggering debt of Rs 4.6 lakh crore. The eight-member group is also authorised to invite nominees from the telecom sector and financial institutions and co-opt any other member, according to an office memorandum of the Department of Telecom (DoT)."
As per reports, the group has been constituted at a time when the telecom sector - despite a burgeoning subscriber base - is facing severe financial pressure, compounded by the entry of aggressive Reliance Jio.