Sellers reflect on insolvency actions against BSNL, MTNL for outstanding payments
New Delhi, November 4 () Some BSNL and MTNL providers are reflecting to file insolvency lawsuits against state-owned companies for non-payment of fees, estimated at around Rs 20,000 crore, a high said on Monday industry executive.
The pending payments are against the supply of telecommunications equipment and other goods to BSNL and MTNL, as well as to the rural broadband project of Rs 45,000 million BharatNet, said the chairman of the Telecommunications Committee of the Chamber of Commerce of PHD, Sandeep Aggarwal
The total outstanding payment from BSNL and MTNL suppliers is around Rs 20,000 million. Banks have begun to pressure suppliers to settle their fees. All vendors will hold a joint protest on November 19. If payments are not made within 10 days, it will approach NCLT for the liquidation of BSNL and MTNL, Aggarwal said.
The email inquiries sent to BSNL and MTNL about the outstanding quotas of the vendors remained unanswered until the story was presented.
On October 31, 2019, the Telecommunications Export Promotion Council wrote to the administrator of the Universal Service Obligation Fund (USOF) to pay several suppliers outstanding dues of around Rs2,000 million. USOF manages the BharatNet project.
These providers include Sterlite Technologies (500 rupees expired), Texas Networks (314 million rupees), HFCL (219 million rupees), Paramount Wires and Cables (168 rupees of crore), VNL (150 rupees of crore), etc., according to the letter.
In a letter to telecommunications minister Ravi Shankar Prasad, Paramount said its bankers are pressuring the company to settle its debts as soon as possible.
Our plant has remained mostly closed, since we have no funds to buy raw materials. Creditors refuse to supply even at high prices. Our salaries of staff and workers have not been paid in the last two months. This has never happened in our history, Paramount said.
Last month, the Cabinet approved a revival plan of Rs 69,000 crore for BSNL and MTNL, but the fees of many suppliers are not yet paid.
Aggarwal said that about 1 lakh of direct employment is affected due to non-payment of fees by government-run companies. With the payment of Rs 20,000 crore, the salary of around Rs 1 million per hour has not been paid, he said. PRS MR