Vendors Of BSNL, MTNL Plan Insolvency Action Against The State Run Telecom Firms To Receive Their Pending Dues

Vendors of BSNL and MTNL plan to move insolvency pleas against these government-run telecom companies for non-payment of dues, which are estimated to be around Rs 20,000 crore.

These vendors include Sterlite Technologies (Rs 500 crore due), Tejas Networks (Rs 314 crore), HFCL (Rs 219 crore), Paramount Wires and Cables (Rs 168 crore) and VNL (Rs 150 crore), which are yet to be paid their dues.

These pending payments are against the supply of telecom equipment and other goods to BSNL and MTNL, according to PHD Chamber of Commerce Telecom Committee chairman Sandeep Aggarwal.

As things stand, banks have started exerting pressure on vendors to clear their dues even as all vendors plan to jointly stage a protest on November 19. If payments are not made within 10 days thereafter, vendors plan to approach the NCLT for liquidation of BSNL and MTNL.

Earlier, the Telecom Export Promotion Council on October 31, 2019 had written to the administrator of Universal Service Obligation Fund (USOF), to pay long-pending dues of around Rs 2,000 crore to vendors.

It may be recalled that in October, the cabinet had approved a Rs 69,000-crore revival plan for BSNL and MTNL

However, dues owed to many vendors still remain unpaid.