BSNL vendors seek DoT intervention over Rs 1,600 cr dues linked to Bharat Net 2

By: |
Published: November 22, 2019 8:47:15 PM

The companies that have approached the DoT flagging their concerns on pending dues include Sterlite, Tejas, Paramount Wires And Cables Ltd (PWCL), Aksh Optifibre, Finolex among others, and the dues run into Rs 1,600 crore, said Sandeep Aggarwal, Managing Director of Paramount Communications.

BSNL, DoT, due, Bharat Net 2, Industry news, Sterlite, Tejas, Paramount Wires And Cables Ltd, PWCL, Aksh Optifibre, FinolexThe Union Cabinet had, last month, approved a plan to combine MTNL – which provides services in Mumbai and New Delhi – with BSNL that services the rest of the nation.

A clutch of Indian vendors of Bharat Sanchar Nigam Ltd (BSNL) on Friday sought the telecom department’s intervention for release of outstanding dues of nearly Rs 1,600 crore, pertaining to Bharat Net II project. These companies, which have sought intervention of Department of Telecom (DoT) Secretary Anshu Prakash, said they are “deeply troubled” over non-payment of dues and sought immediate release of outstanding payments.

The companies that have approached the DoT flagging their concerns on pending dues include Sterlite, Tejas, Paramount Wires And Cables Ltd (PWCL), Aksh Optifibre, Finolex among others, and the dues run into Rs 1,600 crore, said Sandeep Aggarwal, Managing Director of Paramount Communications.

“The dues are towards supply of cable, electronics and pipes and are linked to Bharat Net II project,” Aggarwal, who is also the Chairman of Telecom Committee of PHD Chamber of Commerce and Industry, told reporters.

The Union Cabinet had, last month, approved a plan to combine MTNL – which provides services in Mumbai and New Delhi – with BSNL that services the rest of the nation. It also approved a Rs 69,000-crore revival package, including monetising their assets and giving VRS to employees.

The package includes infusion of Rs 20,140 crore for purchase of 4G spectrum, Rs 3,674 crore for GST to be paid on spectrum allocation, companies raising Rs 15,000 crore in debt on the sovereign guarantee and government funding Rs 17,160 crore VRS and another Rs 12,768 crore towards retirement liability.

The two firms will also monetise assets worth Rs 37,500 crore in the next three years. MTNL has reported losses in nine of the past 10 years and BSNL too has been ringing in loss since 2010. The total debt on both companies stood at Rs 40,000 crore, of which half of the liability is on MTNL alone.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1DPIIT received some complaints of e-commerce firms offering deep discounts: Piyush Goyal
2Moratorium on spectrum payment, tariff hike insufficient to offset SC ruling impact: Fitch
3Parle, Britannia biscuits may get costlier soon; packets may get smaller too