Telecom Lead India: Telecommunications and IT minister Kapil Sibal on Wednesday said the Indian telecom industry is facing a debt of Rs 2,50,000 crore.
The statement reflects the industry’s financial burden due to a weakening economy, lack of availability of funds from banks, low confidence in the regulatory system, low returns on investment, etc.
Due to non-viability of doing business in India, several foreign operators exited Indian telecom market. Also, several existing operators are delaying their Capex (capital expenditure) plan on 2G, 3G and 4G.
Speaking at the annual general meeting of industry chamber CII, Sibal has blamed the Supreme Court, which had last year quashed 122 licences awarded in 2008, for the troubles of the telecom sector.
“Till sometime back, telecom was the golden goose which lay golden eggs. The Supreme Court ensured that the golden goose will never lay a golden egg again at least for a little while,” Sibal said.
The Supreme Court, on February 2012, had cancelled 122 2G telecom licences awarded in 2008 by then telecom minister A Raja, who is out on bail.
In a reference to the Comptroller and Auditor General (CAG) for its Rs 1,76,000 crore loss figures, Sibal also said that no one has benefited by the activism of the government auditor and the media.
“The consumers’ tariffs have gone up. So, the consumer has not benefited. The sector is under a debt of Rs 2,50,000 crore. So the sector has not benefited. The government has got Rs 1,000 crore (through 2G auctions). So the government has not benefited. I would like to know who has benefited from this?” he said.
Replying to a question, Sibal said that decision making has slowed down due to fear of courts and a senior Cabinet minister like him fears signing papers.
“I personally, sitting on that chair, fear signing something because I do not know what is going to happen in courts 5 years from now. This (fear in decision making) has happened since 2010 and CAG and the most independent media in the world has led to all this,” Sibal said.
Sibal also blamed the courts for making it difficult for systems in the country to function in the matter of economic policy making.
Despite knowing the status of the sector, telecom minister and finance minister did not support the crisis-ridden mobile industry when the finance department presented the Union Budget 2013 in February. But both TRAI and DoT are now increasing the pressure on the industry to share more funds to sustain in the business.
