COAI asks PSUs to pay Rs 20,000 crore dues to telecom vendors quickly

By: |
April 09, 2020 4:30 AM

COAI further said the huge scale of delays and breach of contract commitments by PSUs is highly detrimental to global business sentiments towards India.

The core members are telecom operators like Vodafone Idea, Bharti Airtel and Relinace Jio.The core members are telecom operators like Vodafone Idea, Bharti Airtel and Relinace Jio.

Telecom industry body COAI has sought earliest release of around Rs 20,000 crore outstanding dues to vendors like Nokia, Sterlite, ZTE, Ericsson etc. as these companies are facing serious constraints in terms of cash flows due to slowing economic activities in the current situation.

The dues are owed by state-run companies, including BSNL and MTNL, and despite non-payment of their huge pending dues, the vendors have been supporting various public sector units (PSUs) in delivering uninterrupted services, the association said.

“The situation has become highly critical now with total outstanding dues from these PSUs amounting to approximately Rs 20,000 crore which is pending since long. This is adding to critical financial woes to our member companies who are facing serious constraints in terms of cash flows,” COAI director general Rajan Mathews said in a letter dated April 8 to telecom secretary Anshu Prakash.

COAI represents telecom and network equipment manufacturers, e-commerce, digital content and technology partners like Nokia, Huawei, Ericsson, ZTE, Sterlite, Indus, Cisco, Qualcomm, Apple, Facebook, Google, Amazon etc. as its members. The core members are telecom operators like Vodafone Idea, Bharti Airtel and Relinace Jio.

COAI said in the current situation regarding the outbreak and spread of Covid-19 pandemic across the country, its members are playing critical role in addressing the challenges being faced by individuals, corporates, emergency and utility services etc. “However, the business continuity of these players has been severely impacted on account of the widespread of this disease across the globe and the restrictions imposed by government to combat the situation,” the association said.

COAI further said the huge scale of delays and breach of contract commitments by PSUs is highly detrimental to global business sentiments towards India.

“At a time when government of India is doing its utmost through Prime Minister and finance minister’s efforts to attract foreign investment in the country, such issues give a negative signal to global investors on the risks on investing in India and to enter into contracts with government entities,” it added.

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