The telecom industry of India, which is engaged in a strong tariff war, has a stunning loan of Rs 6.10 Lakh Crore from several banks and financial institutions. This information was given by the Parliament to the media in a conference.
Manoj Sinha, the telecom minister, claimed to the Rajya Sabha that tower companies and telecom players have money owing liabilities to the range of Rs 22,812 Crore and Rs 5.87 Lakh Crore in that order. “As per data from State Bank of India, telecom companies in India have a loan of almost Rs 6.10475 Lakh Crore from several banks and financial institutions,” Sinha claimed to the media in an interview.
In contrast, the income of the sector has dropped constantly over the past couple of quarters during the fiscal year 2016–2017. The income decreased to Rs 35,926.6 Crore in the quarter four of the fiscal year 2016–2017, from Rs 53,998.4 Crore in the quarter three and Rs 60,862.2 Crore in the quarter two.
The largest operator of the country, Bharti Airtel, had money owing liabilities valued Rs 1.6 Lakh Crore as of December 2016. This comprises its processes in other Asian countries and Africa as well. Newbie Reliance Jio, which created the chaos into the Indian market with its free voice call and low data tariffs schemes, had money owing liabilities of Rs 87,425 Crore as on February 2017.
Vodafone has a loan of Rs 70,136 Crore, while Idea Cellular and Reliance Communications have money owing liabilities to the range of Rs 68,211 Crore and Rs 73,224 Crore, in that order, as per the data given by the minister to the media in a conference. MTNL and BSNL, the state-run telecom operators, have a loan of a whooping Rs 43,450 Crore to several banks and financial institutions as of March 2016. This data was given by Sinha to the media in an interview at the conference.
Indus Towers, which is a group of top telecom companies, had money owing liabilities valued Rs 4,232 Crore. This data too was revealed by the telecom minister to the media in an interview at the conference.