The move for relaxing caps will benefit operators such as Vodafone and Idea Cellular to retain their airwaves after the merger and also allow other telcos to get more spectrum in a particular band. The IMG had asked the DoT to seek Trai's views on spectrum caps and see if the limits should be relaxed or not.
After TC's approval, the financial measures for the telecom industry will be placed before the Cabinet by the end of this month.
The TC had also sought legal opinion regarding Adjusted Gross Revenue (AGR) applicable in case of receipts from spectrum trading and this will also be discussed in tomorrow's meeting.
Debts of the telecom industry amounted to Rs 7.75 lakh crore in March 2017, of which bank borrowings and liabilities towards spectrum payments to the DoT were Rs 5.8 lakh crore.
With the entry of Reliance Jio last year, the industry has been locked in an intense tariff war. Incumbent operators have been flagging pressure on revenue and profitability, blaming the rock-bottom data tariffs and free offerings of Jio for deteriorating financial health of the sector.
To ease the financial stress, the Indian Banks' Association (IBA) has asked the government to allow telecom companies undergoing debt restructuring in schemes drawn up by the Reserve Bank of India to surrender liberalised spectrum. Any excess upfront payment associated with such spectrum should be refunded, it has argued.