Govt announces big reforms in auto, telecom sectors

The union cabnet has cleared a number of reforms in telecom sector, Drone and Auto industrieas and digital KYC for mobile connection. Communictaion minister Aswani Vashnav said that  cabinet rationalised the Adjusted gross revenue (AGR) definition by excluding non-telecom revenue of telcos from payment of statutory levies. AGR refers to revenues that are considered for payment of statutory dues. In the telecom sector, nine structural reforms and five process reforms have been approved by the cabinet. These reforms will change the framework of the entire telecom sector. They will deepen and broaden the industry, he  said.  The minister said spectrum user charges will also be rationalised. In other measures expected to ease the cash flow issues being faced by most big telcos, the cabinet decided to rationalise the definition of AGR by excluding non-telecom dues and cancel the penalty clause, the minister added. The spectrum auction will be held in the last quarter of the financial year and 100 per cent FDI (Foreign Direct Investment) in telecom via the automatic route was approved by the Cabinet. Firms from neighbouring countries including Pakistan and China, however, will not be allowed to invest under the automatic route, he said. 

The Cabinet has approved the production linked incentive scheme for auto, auto-component, and drone industries to“enhance India's manufacturing capabilities.” Union ministaer Anurag Thakur told a briefing that Rs 25,938 crores will be allotted to the auto sector and  Rs 120 crores to the drone industry under the budgetary provision for the PLI scheme.Thakur added that the PLI scheme has been brought “keeping in mind the needs of the present as well as the future, and for local markets too.”The automobile industry contributes to 35% of the manufacturing GDP of the country. It is a leading sector in generating employment. If we speak of the global automotive trade, then we need to increase India's participation.