Govt intends to address concerns of telecom sector, says Nirmala Sitharaman | Latest News India - Hindustan Times
close_game
close_game

Govt intends to address concerns of telecom sector, says Nirmala Sitharaman

New Delhi | ByPress Trust of India
Nov 15, 2019 09:48 PM IST

While announcing its financial results on Thursday, telecom major Vodafone Idea (VIL) had said its ability to continue as a going concern is dependent on obtaining relief from the government and positive outcome of the legal remedy post the apex court ruling on the Adjusted Gross Revenue (AGR) issue.

Finance Minister Nirmala Sitharaman on Friday said the government intends to address the concerns of the crisis-ridden telecom companies which are facing billions of dollars of fresh statutory liability following a recent Supreme Court ruling.

New Delhi, India – November 06, 2019: Union Finance Minister Nirmala Sitharaman addressing a press conference after a cabinet meeting in New Delhi, India on Wednesday, November 06, 2019. (HT Photo)
New Delhi, India – November 06, 2019: Union Finance Minister Nirmala Sitharaman addressing a press conference after a cabinet meeting in New Delhi, India on Wednesday, November 06, 2019. (HT Photo)

“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.

Hindustan Times - your fastest source for breaking news! Read now.

“Not just 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 too that’s the approach we have taken,” the minister said in reply to a query regarding stress in the telecom sector.

While announcing its financial results on Thursday, telecom major Vodafone Idea (VIL) had said its ability to continue as a going concern is dependent on obtaining relief from the government and positive outcome of the legal remedy post the apex court ruling 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 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 that 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 implication for the sector and finances of the government,” she said.

Regarding CoS, the minister said “it is yet to take a call”.

Sitharaman also said that no bank has approached the finance ministry raising concern over their exposure to the telecom sector.

VIL posted a loss of 50,921 crore -- the highest-ever quarterly loss by any corporate in India, mainly on account of provisioning for paying the statutory dues.

VIL said it is in the process of filing a review petition on the AGR matter.

Telecom major Bharti Airtel too reported a loss to the tune of 23,045 crore for the September quarter.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Mukhtar Ansari Death News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On