Telecom tower companies want Budget to extend input tax credit to infra

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Telecom tower and infrastructure companies want industrial electricity tariffs for telecommunication infrastructure across all states. They say the move could reduce operational costs by up to 20 percent, freeing up resources for network expansion.

Their budget wishlist also includes Input Tax Credit for telecom towers under the GST regime. The change would significantly reduce costs for infrastructure providers and ultimately benefit consumers, the companies, through their representative body the Digital Infrastructure Providers Association (DIPA), has said.

They have also sought clarity on the eligibility of related infrastructure and accessories for Input Tax Credit, saying the current ambiguity leads to substantial financial exposure.

DIPA represents telecom towers and infrastructure companies such as Indus Towers, Ascend Telecom, Summit Digitel, iBUS Networks, Pratap Technocrats, Crest Digitel American Tower Corporation, and Suyog Telematics.

"We also advocate for the nationwide adoption of Green Energy Open Access policies, which would support both our sustainability goals and cost-efficiency efforts," said Tilak Raj Dua, Director General of the Digital Infrastructure Providers Association.

The body reiterated its demand for recommendations of swift implementation of the amended Right of Way (RoW) rules across all states and union territories. Dua said standardisation was vital for streamlining infrastructure deployment and reducing bureaucratic hurdles.

"As we approach the upcoming budget, the Digital Infrastructure Providers Association (DIPA) urges the government to prioritise policies to accelerate the development of robust digital infrastructure across India. Our nation's digital future hinges on the rapid expansion of telecom networks, particularly 5G, and improved connectivity in rural areas," Dua said.

The measures were critical to creating a conducive environment for digital infrastructure growth.

The companies also sought clear guidelines on the definition of telecommunication networks, fair RoW grants and the separation of telecom infrastructure from property considerations under the Telecommunication Act, 2023.

The government said it would notify all rules and provisions of the new Telecom Act within the next 180 days.

In June, the government notified 39 provisions of the Telecommunications Act related to taking temporary possession of telecom networks in the interest of public safety or during emergencies, penalties on more than allowed SIM ownership, intercepting messages and right of way for telecom infrastructure.

However, the more contentious rules on the administrative allocation of satellite spectrum, mandatory biometric verification of users by telecom companies and a smoother dispute resolution mechanism are yet to be notified.

"We notified the Act late last month, and I commit to you that within 180 days, which is our deadline, we will have every rule notified so that all of you can walk down that path with complete confidence with the government by your side,” telecom minister Jyotiraditya Scindia said recently.