Individual telecom companies have despatched letters to the ministry stating their reasons for not being able to pay up. The Association of Basic Telecom Operators (ABTO) met Union communications minister Jagmohan on Friday and informed him about their stand on the question of paying up.

The Federation of Indian Chambers of Commerce and Industry (Ficci) is also meeting the minister on Monday to discuss the issue. Ficci will utilise the meeting to arrive at an understanding and also give answers to Jagmohan's now famous four questions.

Sources said a final view on any relaxation can only be taken up after Prime Minister Atal Behari Vajpayee returns from an overseas trip on Monday, as private industry had approached the PrimeMinister's Office for help.

It now remains to be seen as to how many operators pay up on Monday before the expiry of the deadline at 5.00 pm. The government has already indicated that it will not hesitate to encash the bank guarantees of those who do not pay up in time.

Individual operators in basic and cellular services have now struck out on their own in an effort to arrive at an understanding with the ministry. This follows Jagmohan's criticism of the unionised approach adopted by operators.

The minister had said while each individual company has a different area of operation and has entered into separate agreements with the government, "why should all cases be taken up as if they constitute a single one".

Earlier, Jagmohan had questioned the very basis of the private telecom operators' demand for a moratorium on payment of 20 per cent outstanding licence fee. He asked: "Is it legally, constitutionally, financially and commercially justifiable to violate contractual obligations after signing legalagreements."

The minister's remarks have touched off a wider debate in industry and government over issues like licence fee payments, sanctity of licence agreements and the overall impact of the demand on telecom investment in the country.

Leading industrialists have expressed reservations over the tough stand of the minister, describing it as a narrow and rigid approach towards problems.

Although the minister had assured industry that he had an "open mind" on the demand for relaxation raised by private operators, he nevertheless asked them to find an answer to "how would the public, press, Parliament, auditor general and courts view the non-recovery of Rs 3,700 crore dues" and "how was it that some companies had sold their equity at a premium if they were not doing good business".

Criticising operators for non-payment of licence fees on grounds of poor financial health, Jagmohan reiterated that the real issue was of non-payment of licence fee and the consequent violation of contractualobligation.

The industry on the other hand feels that the minister's stand is unjustified going by the hardships that the companies are going through. The industry's hopes have soared with the prime minister's office pitching in for a compromise. The PMO officials are reported to be advocating for a softer line and has asked the minister to reconsider his stand. Sources said finance minister Yashwant Sinha who was also against any moratorium is also being pressurised by the PMO to adapt a more "pragmatic attitude".