CII, FICCI close ranks against Reliance Jio

New Delhi: Industry bodies, CII and FICCI have closed ranks and written to the Finance Minister Nirmala Sitharaman to address the situation on the precarious financial position of telecom operators with a debt of Rs 7 lakh crore and to ensure there is robust competition for the vibrancy in the sector.

CII and FICCI presidents have written similar letters to the Finance Minister arguing for robust competition, which is being seen as support for beleaguered operators, Airtel and Vodafone Idea.

They have also sought relief for the telecom sector arguing that it has an impact on several sectors and the economy as a whole. The chambers have also sought a meeting with Sitharaman to propose potential remedies for the sector.

“The recent developments on the adjusted gross revenues (AGR) dues of the telecom service providers, have triggered a great deal of concern not only to the seriously affected TSPs, but also mongst others who are part of the overall telecom ecosystem. The precarious financial health of key players in this sector and their massive financial burden (estimated to be Rs 7 lakh crore), threatens not only their individual existence but also the much-needed vibrancy in this sector of national importance,” CII President Vikram Kirloskar wrote to the Finance Minister.

“In this context, CII urges the Government to consider addressing the situation in a manner which continues the robust competition in the industry and ensures further investments in infrastructure for new technologies,” Kirloskar said.

Kirloskar said one of the important elements of vibrancy in any sector is the presence of multiple key players. In line with this, the Government has followed a policy of encouraging healthy competition in the telecom sector, with atleast 3-4 strong players, he added. CII has prepared a detailed note which has been sent to the Finance Minister concerning the telecom sector. CII’s argument is that telecom services are a “raw material” for the rest of the economy-on which acts as a productivity-enhancer, more so with new technologies driving rapid digitalization and increased digital penetration. (IANS)

Also Read: Reliance Industries (RIL) hits Rs 10 Lakh Crore Market Capitalization

Also Watch: DGP Kuladhar Saikia officially handed over charge to Bhaskar Jyoti Mahanta in Guwahati