Telcos may meet IMG today

Telecom Players is likely to meet inter- ministerial group (IMG) today to discuss the financial stress and other operational issues they are facing.

According to the sources close to the development, the group will meet Reliance Communications, Tata Teleservices, MTS and Aircel on Monday. The panel will meet representatives from all top three telcos i.e Bharti Airtel, Vodafone and Idea Cellular on June 15 and from new entrant Reliance Jio. The meeting with both public sector utilities like MTNL and BSNL will be held on June 17.

Sources also said that after the IMG meeting, officials will meet telecom minister Manoj Sinha on June 22. They added that the officials is likely to meet finance minister Arun Jaitley.

The sector is in under pressure due to increasing pressure after the entry Mukesh Ambani-led Reliance Jio and a debt of about Rs. 4.6 lakh crore.

Telecom Minister Manoj Sinha has recently said that Government will intervene "at the right time in a right manner".

He said, "the Government is aware and concerned about the sector, we will intervene at the right time in a right manner, we have also set up an inter-ministerial committee to look into the financial woes of the telecom sector." Added that the industry has faced the same situation earlier in 2003.

Sinha further added that the market is very big and which is transforming into data-centric from voice-centric.

The Minister has also advised the telecom players to talk to the banks about their borrowings, and if any restructuring could be done As banks have recently raised an alert after the loan to the sector crossed Rs 8 lakh crore.