‘Want no company to shut operations’: FM Sitharaman assures telcos govt will address their concerns
New Delhi | Jagran Business Desk: After the Supreme Court ruling last month in which the top court asked the telecom companies to pay the past statutory dues to the government, Union Finance Minister Nirmala Sitharam on Friday asserted that the government have plans to address the worries of the crisis-ridden telecom companies, which are facing billions of dollars of fresh statutory liability after the SC ruling.
"I want no company to shut operations. I want everyone to be up and running. We want the economy to have good number of companies in business and flourish in their business," she said as quoted by PTI.
"Not just the telecom sector, my wish is all companies in all sector(s) be able to do business, service their market customer and survive. So with that approach, the finance ministry has always been talking and in telecom as well, that's the approach we have taken," PTI quoted Sitharaman as saying in reply to a query regarding stress in the telecom sector.
On Thursday, while announcing its financial results, Vodafone Idea (VIL) said that to continue the company is dependent on obtaining relief from the government and positive outcome of the legal remedy post the top court’s verdict on the Adjusted Gross Revenue (AGR) issue.
The Supreme Court last month ruled in favour of the government and directed telecom companies to pay as much as Rs 1.42 lakh crore in past statutory dues to the government.
Days after the Supreme Court verdict, the government had set up a Committee of Secretaries (CoS) under the Cabinet Secretary to suggest measures to mitigate financial stress in the sector.
Sitharaman said "it is the intention" to address concerns of all those who have approached the government with serious concerns post the court's decision.
"We are also conscious there is a Supreme Court order that the government has won and therefore, the department concerned has to take a call that would be a collective call, taking into account... understanding the implication for the sector and finances of the government," she said. Regarding the CoS, PTI quoted Sitharaman adding "it is yet to take a call".
The minister also said no bank has yet approached the finance ministry raising concern over their exposure to the telecom sector.
VIL posted a loss of Rs 50,921 crore -- the highest-ever quarterly loss by any corporate in India, mainly on account of provisioning for paying the statutory dues. The company said it is in the process of filing a review petition on the AGR matter. Telecom major Bharti Airtel also reported a loss to the tune of Rs 23,045 crore for the September quarter.
(With PTI Inputs)
Posted By: Talib Khan