Contractual Delays by Companies Will Hurt Business Sentiments
COAI wrote a letter to telecom secretary Anshu Prakash and stated its fear regarding the breach and delay of contracts done by public sector companies. The letter also stated that delays in contractual commitments would affect the business operations carried out in India. Moreover, amid the precautionary lockdown period, delay in outstanding dues will increase tension and hassle for companies who are facing work lockdown due to COVID-19 outbreak. Also, COAI stated that they have been supporting public sector companies for uninterrupted services, even in cases of payment defaults, reported ET Telecom.
BSNL and MTNL Outstanding Dues is over Rs 20,000 Crore
Though BSNL cleared a part of its outstanding dues back in 2019, the state-owned telecom operator still have to clear whopping amount of outstanding dues towards telecom equipment and network manufactures, infrastructure and providers. As per Rajan S Mathews, who is the Director General of COAI, the state-owned telecom operators have to pay approximately Rs 20,000 crore towards outstanding dues. However, Mathews also said that companies have been facing a cash crunch situation from a prolonged period which led to non-payment of outstanding dues.
Partial Payment of Outstanding Dues Will help Public-Owned Firms
Since the outbreak of COVID-19, every industry functioning around the globe is facing financial operations. In such times if the government partially pays outstanding dues to the much-affected companies, it will ensure their survival amid the precautionary lockdown period. Also, the partial payment of outstanding dues will relief the affected companies and ensure full clearance of dues soon.
