Govt's 5G spectrum auction could raise only INR40,000cr, analysts fear. How bankruptcy was redefined in India.
Not-So-Great Expectations: On Friday, the Telecom Department gave the green-light for the largest-ever spectrum auction, which will be held in March-April 2020. At base price, the auction could be expected to raise INR5.22Lcr for the exchequer.
But the steep starting price of the 5G spectrum might play spoiler. In fact, as per analysts, the government could end up selling less than 10% of the spectrum and raise only INR40,000cr.
“Given the high reserve prices, acute balance sheet stress of older carriers and absence of an immediate 5G business case, the government is unlikely to see any meaningful take up of pure 5G and 700 MHz airwaves,” Rajiv Sharma, research head at SBICap Securities, told ET. “So, it won’t raise even 10% of the targeted sales proceeds in the upcoming auction.” ET Telecom
Changing Times: ArcelorMittal SA's acquisition of Essar Steel India Ltd was not an overnight process. It took two gruelling years.
In a country like India, the idea of bankruptcy is still nascent and the process of winding down a business while repaying debtors remains muddled in uncertainty and doubt. Today, however, slowly but surely, bankruptcy is getting redefined in India. Here's a deep-dive into the issue.
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