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Our Corporate Bureau
New Delhi, Feb 23: The department of telecommunciation (DoT) has extended the deadline for payment of 20 per cent licence fee by private telecom operators to February 28. Orders to this affect were issued on Tuesday, ending the weeklong suspense over the department's next move on the vexatious issue.
The decision follows a meeting between Prime Minister Atal Bihari Vajpayee and communications minister Jagmohan, amid hectic lobbying by private operators for a deferment. Operators had sought a deferment till the new telecom policy, to be announced by March 31. The remaining 13 defaulters, including five basic-services operators and eight cellular operators, have now been asked to furnish enhanced bank guarantees.
Vajpayee had written to his cabinet colleague, suggesting that telecom operators be given time till March 31 to pay the dues amounting to a staggering Rs 3,700 crore.
Sources said that in spite of the directive, Jagmohan had stuck to his guns and succeeded in convincing Vajpayee not to capitulateon the operators' demand.
A DoT spokesman said that Tuesday's decision was based on mutual consent between the prime minister's office and the communications ministry.Jagmohan was of the view that the extension should only be given till February-end, in order to make it clear to companies that they cannot get away from fulfiling contractual obligations.
Earlier, the minister had said said that even if the payment date was extended, there would not be any waiver of licence fee. According to the minister, granting an extension would be unjustified and discriminatory towards the 16 operators who have already paid up close to Rs 70 crore towards their outstanding liabilities.
During his meeting with Vajpayee, Jagmohan had apprised the prime minister over the implications of giving a long extension. Companies which have met their obligations have already expressed reservations over the PMO move, saying that "such an extension would be discriminatory at such a stage where a handful of operators are left topay up." Earlier, the minister had questioned the very basis of the telecom operators' demand for a moratorium on the outstanding payment. Criticising operators stand for non-payment of licence fees on grounds of poor financial health, the minister had reiterated that the real issue was of non-payment of licence fee and the consequent violation of contractual obligations. The minister was also critical of the unionised approach adopted by operators.
The minister's remarks have sparked off a wider debate in the 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.
The issue came to a head when individual operators in basic and cellular services too had struck out on their own in an effort to arrive at an understanding with the ministry. Leading industrialists had expressed reservations over Jagmohan's tough stand, describing it as a narrow and rigid approach towards addressing problems.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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