INSUBCONTINENT EXCLUSIVE:
Debt liabilities of telecom companies will stay even after transforming interest amount into equityNew Delhi: Today and future financial
obligation liabilities will continue to stay with telecom companies which have actually proposed to transform their interest charges into
equity stake for the government, Telecom Minister Ashwini Vaishnaw said on Wednesday
Debt-ridden Vodafone Idea (VIL), Tata Teleservices and Tata Teleservices Maharashtra have actually proposed to convert interest liabilities
payable to the federal government into equity
VIL board has actually proposed to assign 35.8 percent shares and Tata Teleservices Maharashtra around 9.5 per cent stake to the federal
Federal government will stay a financier just
The companies will be run by the specialists
All the financial obligation liabilities will stay duty of the business
The companies have actually provided us dedication, Mr Vaishnaw said.VIL has actually proposed to assign preferential shares to the
government at Rs 10 per share, which according to analysts is at 58 percent premium based upon the share rate at the relevant date of August
If the plan goes through, the federal government will become the biggest investor in the company which is reeling under a financial
obligation burden of about Rs 1.95 lakh crore.Asked if the liability of payment for upcoming spectrum auction will shift to the federal
government, Mr Vaishnaw said the companies will have the whole responsibility for the payment of radiowaves and there will be no concern on
the Centre.He said the government has actually just extended an assisting hand as part of the telecom sector reform plan to lower the burden
on business, conserve and produce tasks along with guarantee healthy competition in the market
We will exit from the business at a proper time
Government will not interfere in daily operations of the business
They will continue to be professionally handled, Mr Vaishnaw said.The telecom ministry, in a statement, has likewise clarified that the
three business will not become public sector companies after the interest fees are converted into equity stake for the government.The
telecom minister even more said state-owned BSNL slipped into stress due to bad decisions taken by the previous government and it is now in
BSNL and MTNL remain in excellent shape now
They remain in better shape after we offered them relief plan of about Rs 70,000 crore
We are dealing with supplying more support to them, Mr Vaishnaw said.BSNL has looked for Rs 40,000 crore from the government for setting up
a 4G network and repay short-term debt.The minister decreased to comment on monetary information of the assistance package for the PSUs.He,
however, added that the Centre for Development of Telematics (C-DOT) has developed 4G innovation indigenously which will be released in the
BSNL network.Technologically, this is a highly advanced system, he said
C-DoT is also moving from 4G to 5G development
Work has likewise begun on development of 6G standards
In coming years, we desire India to lead the world in all these innovations, Mr Vaishnaw said
