Digital Infrastructure Providers Association (DIPA) has revealed its recommendations for the upcoming 2025-26 budget in India.
A primary concern is the disparity in electricity tariffs, which burdens telecom infrastructure providers with an annual operational cost of approximately Rs 5,000 crore.
Manoj Kumar Singh, Director General of DIPA, advocates for the implementation of industrial electricity rates across all states, following the progressive models in Maharashtra, Himachal Pradesh, and Haryana.
Additionally, the telecom tower association calls for the establishment of 24×7 power supply to telecom sites and expedited processing of new electricity connections, highlighting the importance of smart meters under the Revamped Distribution Sector Scheme (RDSS).
Telecom infrastructure growth is further hindered by exorbitant new connection charges in regions like Sikkim. DIPA suggests nationwide implementation of composite billing schemes to streamline operations and improve billing efficiency.
The charges for new electricity connections in certain regions, particularly in Sikkim, where connection charges can reach Rs 13-15 lakhs compared to approximately Rs 40,000 in neighboring Darjeeling, are hampering telecom density growth, DIPA said.
To support the government’s 5G rollout and strengthen digital infrastructure, the association proposes classifying telecom towers under “Plant and Machinery” for tax benefits and increasing depreciation rates for telecom batteries from 15 percent to 65 percent, aligning tax policy with operational realities.
The ambiguity surrounding Input Tax Credit (ITC) on telecom towers needs resolution, and DIPA urges amendments to Section 16(5) for clarity. Additionally, the association advocates for enhancing the Digital Bharat Nidhi to provide financial support for upgrading infrastructure, thereby facilitating rural connectivity and supporting the National Broadband Mission 2.0.
Security concerns, including theft and vandalism of telecom infrastructure, also require immediate action, with DIPA urging stronger protective measures. The data center industry, crucial for India’s digital transformation, seeks tax holidays or concessional tax rates of 15 percent to encourage foreign investment and job creation.
DIPA further stresses the resolution of long-standing AGR-related issues by waiving interest and penalties, providing financial relief to operators.
To foster innovation, DIPA calls for regulatory sandboxes and the adoption of sustainable green technologies. The association also recommends the rationalization of levies, such as the Universal Services Obligation Fund, to free up capital for critical infrastructure investments.
Finally, to complement terrestrial digital infrastructure, DIPA suggests enhancing GST exemptions for the satellite launch sector. Collectively, these measures are expected to strengthen India’s digital infrastructure, accelerate the 5G rollout, and support the realization of Digital India objectives.
TelecomLead.com News Desk
