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|May 4, 1998||
More concessions for telecom likelyDomestic telecom manufactures are likely to get deemed export status and rationalised import duties, according to a draft note drawn up for the Cabinet Committee on Infrastructure by the Planning Commission.
Overall, the recommendations call for easier provision of concessions, infrastructure status to all value-added services and capital restructuring of the telecom public sector manufacturers.
The note also called for PSUs being allowed to provide basic services in circles where no bids had been received, citing the consortium formed by Mahanagar Telephone Nigam Limited, the Telecommunications Consultants India Ltd and Indian Telephone Industries.
But it said tax holidays, higher limits on external commercial borrowing and rebates on subscription to shares/debentures were necessary to better the consortium's chances. It also called for funding from sources like the World Band and the Asian Development Bank.
Licences should be issued to operators on a case-by-case basis, with exemptions being granted more freely to encourage private participation in the telecom sector. It said manufactures should be given the same concessions available to the telecom service sector and be included in the list of infrastructure industries, the note said, pointing out that the current tariff structure encouraged the traders more than the makers.
The note also sought manufactures of basic and value-added services be given deemed export status since such products can be imported at a reduced duty of 20 per cent.
-Compiled from the Indian media
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