This post first appeared on TelecomTalk Read more at: https://telecomtalk.info/bsnl-mtnl-intervention-sovereign-guarantee/279731/, BSNL and MTNL Seeks Intervention of PM in Clearing Sovereign Guarantee Worth Rs 15,000 Crore
State-owned telecom operators BSNL and MTNL have asked the involvement of the Prime Minister of India Narendra Modi in the matter of outstanding sovereign guarantee. The telcos stated that certain officials from the finance ministry department had blocked the sovereign guarantee, which is worth Rs 15,000 crore. The amount if released soon will be a big aid to state-owned telcos as they are already under financial distress. As reported by ET Telecom, state-owned telecom operators BSNL and MTNL have to clear around Rs 20,000 crore of vendor dues.
Government Has Already Approved Revival Plan
Government of India has already approved the revival plan for the state-owned telecom operators BSNL and MTNL. Telecom Equipment Manufacturing Association (Tema) addressed the PM of India through a letter and noted that even after the revival plan has been approved, certain finance ministry officials have blocked the issue of sovereign guarantee worth Rs 15,000 crores to BSNL and MTNL. Apart from this, domestic companies have asked the top office to involve in giving contracts to state-owned telcos BSNL and MTNL on nomination basis as it will boost the revenue of the public-sector companies and financially help the telecom sector.
BSNL is Aiming to Cut Down on Contract Labourers
BSNL is taking all the measures to reduce the financial pressure and ensure a smooth flow of telecom service to subscribers. As a part of it, BSNL is aiming to cut down on contract labourers to reduce the expenditure.
Government Might Stop Gear Supplies from Chinese Vendors
Government of India is already planning to stop Chinese telecom gear makers from supplying networks to state-owned telecom operators BSNL and MTNL. The primary reason behind it is the ongoing geopolitical situations going on between India and China. However, if the telecom operators will be forced to cut network supplies from Chinese vendors, they will have to pay massive outstanding dues. State-owned telecom operators BSNL and MTNL also have Rs 20,000 crore dues towards Chinese vendors. As the government will release the sovereign guarantee of Rs 15,000 crore, it will be a significant financial aid to BSNL and MTNL.
Original article: BSNL and MTNL Seeks Intervention of PM in Clearing Sovereign Guarantee Worth Rs 15,000 Crore
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