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Tuesday, August 17, 1999

Essar, Fascel, JT Mobile fail to pay up by due date 

Siddharth Zarabi  
New Delhi, Aug 16: Essar Commvision, Fascel and JT Mobile have failed to meet the deadline for payment of oustanding dues as a pre-condition for migration to revenue sharing.

Sources in the department of telecommunications (DoT) said that the future course of action against these companies will be decided in a day or two.

All other private-sector telecom companies have paid up the dues within the August 15 deadline. The dues paid was Rs 159.89 crore on account of 15 per cent outstanding licence fees and Rs 63.47 crore on account of liquidated damages (LDs).

Basic-service providers have paid up Rs 64 crore, of which Rs 57 crore is on account of LD and penal interest, while cellular service providers have paid Rs 165 crore.

JT Mobile, Fascel and Essar Commvision had not paid their 20 per cent dues in February as a result of which DoT had encashed their financial bank guarantees.

These companies now need to increase their bank guarantees to that extent as licence fees had been already adjusted whenthe earlier 20 per cent payments were due.

Sources said that the companies were also required to submit individual undertakings accepting the above conditions and also withdraw all their court cases against the Government in order to be eligible for revenue sharing.

However, none of the companies have done this so far. Representatives for the operators said that they would furnish the undertakings in two or three days.

Monday was the last date for private cellular and basic service providers to pay the oustanding dues. DoT had also directed the companies to pay liquidated damages and penal interest on account of earlier delays.

In addition, the bank guarantees for the remaining licence fee dues have to be furnished to be by November 30, 1999, with the entire remaining dues under the old licence fee regime (cut off date July 31, 1999) to be cleared by January 31, 2000.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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