Govt will ensure no company shuts operations, Nirmala Sitharaman says. Airtel knocks on lenders' doors to clear AGR dues. RCom posts INR30,142cr loss.
Keep the Faith: Seeking to allay mounting concerns regarding the health of the telecom sector, Nirmala Sitharaman said the government was intent on ensuring that no company shuts operations due to financial unsustainability.
"We want no company to shut their operations. We want everyone to flourish," the Finance Minister said at a press meet. NDTV
Highway to the Danger Zone: A few days ago, the CEO of Vodafone said the company’s India venture was facing possible liquidation. The Supreme Court’s recent verdict on AGR has added to Indian telcos’ already-serious mountain of debt.
The situation is indeed critical. Bharti Airtel, for example, has reportedly called lenders to raise capital to the tune of $3bn to clean its AGR dues. Its internal accruals are insufficient to clear its debts, and the mounting dues is no doubt putting huge pressure on the company’s resources. BS
Meanwhile, Reliance Communications posted a consolidated loss of INR30,142cr for July-September 2019 – again due to the implications of the apex court’s ruling. A year ago for the same period, the debt-ridden company, which is going through an insolvency process, reported a profit of INR1,141cr. ET Markets