"If telecom operators undertake to make payment by March 31 without raising any further issue, the Government can consider their viewpoint," DoT counsel and additional solicitor general RN Trivedi submitted before the Delhi high court during the hearing on the case filed by three basic and one cellular telecom operator against DoT.

So far the department has not initiated any action against the companies which have defaulted on payment of 20 per cent licence fee on the expiry of the February 28 deadline, Trivedi said, adding that "there is no show-cause, if we initiate any action then show-cause will follow".

The offer made by Trivedi was rejected by counsel of the four petitioner companies Birla AT&T, Essar Commvision, Tata Teleservices and Hughes Ispat.

Justice MK Sharma adjourned for Friday the hearing of all four petitions seeking interim injunction against DoT from encashing the bank guarantee of the four companies following their failure to meet the February 28 deadline.

DoT is required to give six months notice for termination of licence to basic operators and that of 60 days to cellular companies, Trivedi and Government counsel Rakesh Tiku said.

Industry operators were surprised by the Government's submission, saying that if the DoT intended to extend the deadline till March 31, as demanded by the operators and recommended by the Prime Minister, why did it have a sudden change of heart now.

There was no need to precipitate the situation and announce a truncated extension effective for a few days only, said sources. Instead, this litigation could have been avoided had the Government given more leeway at the very start itself, they added.

Operators have now demanded that the extension be given till the date of a new telecom policy was announced, said sources. "We now want an extension to coincide with the effective date of the announcement of the policy instead of our earlier demand of March 31," added sources.