Govt working on to address telecom industry debt : Manoj Sinha

Admitting that the huge debt piling in the telecom sector, Union Telecom Minister Manoj Sinha has said the government is working on to address the issue. 

"The growth is happening. There are certain concerns around the balance sheet of some companies...The government is aware of it and has constituted an inter-ministerial panel to debate all the issues. The panel has already held its first meeting," Sinha said at curtain raiser event of the India Mobile Congress held here on Tuesday. 

Later speaking to reporters on the sideline of the event, the Minister said the telecom department will help the industry to address their concern. "The companies should also take up their



problems with the Finance Ministry and banks as well," he added. 

The telecom companies profit margin nosedived following tariff war triggered by the entry of Reliance Jio. The telecom industry has started requesting for a bail- out package for mobile operators whose balance sheets are now heading south.

Telecom operator Reliance Communications has not been able to service debt obligations and has sought time from lenders till September-end to make payment.

The domestic telecom industry said the total debt is around Rs 3 lakh crore and exposure will be much more if deferred payments towards spectrum purchases are also taken into account.