COAI Asks DOT To Direct BSNL, MTNL To Clear Rs. 20,000 Crore Dues

Even though the government is trying to pay BSNL and MTNL employees the VRS amount, the COAI, wants the DOT to instruct both BSNL and MTNL to clear their dues. The industry body Cellular Operator Association of India that represents telecom operators has also written a letter to the telecom secretary about the same.

The COAI is looking for DOT intervention in the matter and wants the ministry to clear this issue. The firm said that there is a breach of commitments and contracts, which is not good for the sector.

"This is adding to critical financial woes to our member's companies who are facing serious constraints in terms of cash flows due to slowing economic activities in the current situation," COAI said in a letter.

Both MTNL and BSNL have to pay dues to ZTE, Nokia, Vihaan Networks Limited, Paramount Wires & Cables Limited, Fiberhome, Himachal Futuristic Communications Limited, Transline Technologies, and Tejas Networks, Nokia, and ZTE. However, BSNL has cleared some amount of its dues last year in December.

"We would also bring to your kind notice that our members have been supporting various PSUs in delivering un-interrupted services, despite non-payment of their huge pending dues. However, the situation has become highly critical now with total outstanding dues from these PSUs amounting to approx Rs. 20,000 crore, which is pending since long," the industry body added.

Meanwhile, both public sector enterprises BSNL and MTNL have announced many offers for their customers. The companies have launched free talk time and calling benefits. The companies are offering extra data to their broadband users without any extra charge. In fact, MTNL has launched special offers for its 2G users. The telco is providing free incoming calls during the lockdown. The telecom regulator TRAI has asked the operator to provide an outgoing call facility also.