India News
Search Web Directory
News Home
No relief to telcos as govt likely to turn down 2-year moratorium request on payment of dues
Posted on 22nd January 2019
Even as Vodafone Idea has a board meeting on Wednesday to finalise plans to raise Rs 25,000 crore of capital, the government is likely to turn down a request by the Cellular Operators Association of India — RJio does not support the proposal though it is a COAI member — to give telcos a two-year moratorium on their deferred-payment obligations for spectrum bought in the past. COAI’s letter is the fourth written since the end of November last year.

Government sources said apart from the fact that there is no industry consensus on the moratorium, the government had already given the industry concessions by raising the repayment period to 16 years from the earlier 10 and with elections around the corner the Opposition would position the relief as crony capitalism.

While Bharti Airtel has to pay Rs 5,573 crore of deferred payments every year (using the 16-year period) from 2019 to 2031 — this is for spectrum bid for so far — Vodafone Idea has to pay Rs 10,579 crore, RJio Rs 2,969 crore and RCom Rs 439 crore.

A combination of rising payout to the government and falling telecom revenues as a result of the RJio competition, the share of telco revenues going to the government rose from 29% in FY08 to 60% in FY18.

COAI’s letter to telecom secretary Aruna Sundararajan draws attention to the 42.5% fall in adjusted gross revenues (AGR) between Q1FY17 and Q2FY19 — this will make the ratio of revenues going to the government rise even more — from `44,754 crore to `25,728 crore. While COAI’s numbers apply only to revenues from ‘access’ services, even the Trai’s data — for all revenues — shows a 33% fall in AGR, from `53,383 crore to `36,142 crore in the same period.

According to COAI, as a result of the increased competition, the industry’s ROCE is now below 20% and, “for the first time in the financial year 2017-18 and H1FY19 plunged into loss at PBT (profit before tax) and is delivering a negative ROCE”.

If Vodafone Idea does not get a moratorium on the deferred payments, it may have to revisit its capital raising plans since around 40% of the `25,000 crore that is to be raised will be used up for just this in 2019; a stock exchange notice from the firm said the fundraising will be complete by March 2019.

The company’s annual capex guideline is `27,000 crore for FY19 and FY20 — this is to raise its 4G coverage by 80% and capacity 2.5 times — or an amount that is quite similar to Bharti Airtel’s. Vodafone Idea’s July-September losses were `4,974 crore versus RJio’s net profit of `831 crore in the October-December quarter. Vodafone Idea’s net debt is `1.13 lakh crore.

Related Companies: Cellular Operators Association of India (COAI)   

Other Latest News
Tata Motors launches AMT variants of Tigor; price starts at ₹6.39 lakh
Posted on 18th June 2019
New Delhi: Tata Motors Monday launched automated manual transmision (AMT) versions of its compact sedan Tigor with price starting at ₹6.39 lakh (ex-showroom Delhi).

The company has introduced two variants under its Tigor AMT range - XMA and XZA , priced at ₹6.39 lakh and ₹7.24 lakh, respectively, Tata Motors said in a statement.

Lucknow makes its first road from plastic waste
Posted on 18th June 2019
Several cities in India are finding innovative ways to get rid of the growing menace of plastic. Chennai, Jamshedpur, Pune and Indore found an ingenious way and now Lucknow has joined the bandwagon.

The Lucknow Development Authority (LDA) has started using plastic waste to construct roads as a pilot project. This environment-friendly road is being constructed as a trial from Gomti Nagar Police Station to Indian Institute of Management (IIM) Lucknow.

Pulwama car blast: 2 wounded soldiers die
Posted on 18th June 2019
Two of the around 10 Army personnel injured in a car blast in Pulwama succumbed to their injuries in a Srinagar hospital on June 18.

“Two soldiers, brought to the hospital with severe contusions and concussions, have succumbed to their injuries, while undergoing treatment in the Army’s 92 Base Hospital. We deeply mourn the demise of our bravehearts,” said a Srinagar-based Army spokesman.

Maruti-Toyota tie-up: Analysts seek clarity from Suzuki arm
Posted on 18th June 2019
Analysts have raised concerns over Maruti Suzuki not disclosing more details pertaining to the partnership with Toyota, saying that there is a lack of communication and the company needs to be more open about the collaboration and its implications in the medium and near term.

In a letter to Maruti Suzuki CEO Kenichi Ayukawa, investment management and research firm Sanford Bernstein asked for clarity on what is Maruti offering Toyota in terms of pricing arrangements, who manufactures which model eventually and what kind of manufacturing margins will Maruti earn.

BPCL’s investment plan for Mozambique gas field gets approval
Posted on 18th June 2019
A ministerial group headed by home minister Amit Shah has given its nod to Bharat Petroleum Corporation’s (BPCL) plan to invest $2.2-2.4 billion in the Rovuma Offshore Area-1 gas field in Mozambique. The group — including finance minister Nirmala Sitharaman, commerce and railway minister Piyush Goyal, external affairs minister S Jaishankar and petroleum and steel minister Dharmendra Pradhan — had met on June 4 to scrutinise the investment plan, as it is still to be approved by the Cabinet Committee on Economic Affairs (CCEA).

» Post a FREE Classified Advertisement
Inviting Real Estate Agents, Job Placements Agents, Educational Institutes, Software Service Providers, Real Estate Builders, Marriage Bureaus, Travel Agents, Restaurant Owners, Health & Fitness Centers and other Local Businesses to Post a FREE Classified Advertisement on Classifieds Website.
Jobs in India India Real Estate Automobiles Matrimonials Beauty & Fitness

Add a comment for No relief to telcos as govt likely to turn down 2-year moratorium request on payment of dues
Please only use this form to enter comments on the above company. All comments are reviewed before they are displayed on the web site. Not all comments may be displayed. Check back with us to see if your comments have been displayed.
If you want us to email the comments posted by users, please Subscribe by email
Security Code*

Be the first person to write a business review for No relief to telcos as govt likely to turn down 2-year moratorium request on payment of dues

Most Read News

Private insurers continue strong growth in May, smaller ones gain more

Coal India to soon name merchant banker for Australian buy

Sensex furthers gains for 3rd session on robust global cues

Amitabh Bachchan's Twitter account hacked, tweets praise Pakistan

Jio impact waning? Airtel, Vodafone Idea arrest revenue slump

More India News

  India Web Directory
Business Profiles
Automotive Directory
IT/ITES/BPO Directory
Hotel Directory
Health Directory
Business Directory
Gems & Jewellery
Education Directory
Real Estate Directory
Agriculture Directory
Logistics Directory
Yellow Pages
NRI Guide
Photo Galleries
Global Web Directory
*** FREE India Classifieds
Order Premium Listings
Submit a Site
Business Reviews
About us
Link to us
Contact us
Google Search Keywords: India Catalog, IndiaCatalog, India Web Directory
    © 1999 - 2019
    All Rights Reserved
Privacy Statement