Banks discuss telecom woes with govt

In a review meeting with the finance ministry, public sector banks discussed their exposure to the stressed telecom sector on Thursday. Banks are concerned about the exposure to these companies in the form of bank guarantees, which could be invoked by the Department of Telecom (DoT), in case the telcos do not pay dues as per the Supreme Court’s adjusted gross revenues (AGR) ruling. The apex court on October 24 ruled that telecom companies had to pay Rs 1.33 lakh crore to government as outstanding dues. Although the Cabinet Committee on Economic Affairs provided some relief to the stressed companies by announcing a two-year moratorium for spectrum payment on Wednesday, no relaxation has been provided in case of AGR ruling payments.