NEW DELHI: Homegrown telecom products and solutions companies which have been core suppliers to state-run Bharat Sanchar Nigam Limited (BSNL) have yet again sought intervention from the Finance Ministry and the Department of Telecommunications (DoT) to get overdue cleared.
In a letter dated September 30, 2019, the Telecom Equipment Promotion Council (Tepc) said that outstanding worth nearly Rs 1,500 crore for its member companies should be cleared without further delay.
Last week, Finance Minister Nirmala Sitharaman asked the Centre-owned public sector firms to clear overdue payments to suppliers and vendors by October 15 to help the economy grow further. But, BSNL is under general financial stress with no cash.
Delhi-based telecom group that represents domestic firms has already written similar letters in the past, highlighting the difficulties being faced by companies due to the nonpayment from state-controlled BSNL.
Local firms are, however, finding it hard to further survive leading to salary delays to their staff, layoffs and closing down of multiple branch locations.
Since the companies majorly rely on business from the fourth-largest telco, the bankers or creditors are also turning their back on them, according to an industry source.
The firms which are seeking their outstanding include Sterlite Technologies Limited (STL), Aksh OptiFibre, Paramount Cables & Wires Limited (PWCL), Vihaan Networks Limited (VNL), Transline Technologies Limited (TTL) and Clixxo Broadband.
State-run telecom carrier has been facing a huge gap of nearly Rs 800 crore between monthly income and spend, and in the absence of any support from the government, has delayed wages to its 160,000 workforce thrice in the current calendar year.