Union Cabinet has approved a one-time waiver of spectrum dues amounting to over ₹6 lakh crore for central and state government departments—covering Defence, Railways, Space, Information & Broadcasting (Prasar Bharati) and others
📌 What’s Included in the Waiver
- Penalties and ~95% of interest waived: Departments now owe only the principal plus a flat 5% interest—instead of compounded rates (~24% annually) over the years
- Eligibility: Only government departments are covered—not public sector units or private telecom operators
- Backlogged payments: Some dues date back to 2004, and compound interest had ballooned these greatly; now largely written off
📶 Why This Policy Matters
- Relieves fiscal burden
Waiving penalties enables key departments to redirect funds to essential services instead of paying disproportionate interest - Frees up key spectrum
The government simultaneously approved refarming of ~1,100 MHz, valued at ₹5 lakh crore—allowing this spectrum to be auctioned for 5G and future 6G use - Supports network growth
Clearing legacy spectrum dues makes way for telecom players to access mid-band frequencies crucial for expanding 5G networks and future 6G initiatives
🏛 Defaulters & Usage
| Department | Reason for Spectrum Use |
|---|---|
| Defence | Communications, surveillance |
| Railways | Signaling, safety systems (700 MHz band) |
| Department of Space | Satellite operations |
| Prasar Bharati | Public broadcasting |
These agencies had been allocated spectrum administratively by the DoT, but delayed payments led to high penalties and interest
⚙️ How It Works
- Principal + 5% interest: Simplified payment avoids years of compounding.
- No penalties: All late fees wiped out.
- Timeline: Cabinet approved the clause the week of June 27, 2025, though it’s yet to be formally announced
🔍 Impacts & Outlook
- Departments benefit: They’ll gain immediately, freeing up budgets.
- Telecom sector wins: Auctions and spectrum availability improve.
- Fiscal responsibility: Reflects a strategic shift rather than blanket forgiveness.
- Watch this space: Private telecom players await similar relief on SUC/AGR dues, but no confirmation yet newsbytesapp
