The Indian telecom industry, recognized as a sunrise sector for the country, has been pivotal in providing affordable and quality-assured telecom services. With over 7.7 lakh telecom towers hosting nearly 27 lakh BTSs (Base Transceiver Stations), the industry delivers 2G, 4G, and 5G services nationwide, catering to approximately 1.2 billion customers.
Mr. T.R. Dua, the Director-General of the Digital Infrastructure Providers Association (DIPA), emphasized the need for supportive policies, simplified regulations, and streamlined GST norms to bolster the development of the telecom infrastructure industry. In a letter addressed to Smt. Nirmala Sitharaman, the Union Minister of Finance & Corporate Affairs, Government of India, DIPA seeks backing for the telecom infrastructure sector in the Union Budget 2024.
DIPA represents leading entities in India’s Digital Communications Infrastructure Industry, including Summit Digitel, American Towers, Indus Towers, and others. The association underscores key issues, urging government support for measures such as the availability of input tax credit on telecom towers and an increase in the tax depreciation rate on batteries from 15% to 65% for industrial and commercial use, ensuring cost recovery within a three-year economic lifespan.
Furthermore, DIPA advocates for the rationalization of TDS provisions concerning the purchase of electricity and diesel under section 194Q. Enhancing the ease of doing business in the telecom sector is expected to attract more investment and foster long-term growth in the industry, as stated by Mr. Dua, expressing anticipation for the Government of India’s support in these endeavors.
