S Tel may not be able to secure a Rs9.53bn (US$212m) loan facility from a consortium of banks led by IDBI because the Batelco-controlled cellco is being investigated as part of the 2G scam, according to the Economic Times.
The nine-year facility, which…
S Tel may not be able to secure a Rs9.53bn (US$212m) loan facility from a consortium of banks led by IDBI because the Batelco-controlled cellco is being investigated as part of the 2G scam, according to the Economic Times.
The nine-year facility, which carries an interest rate of 12.75%, is arranged by IDBI, State Bank of India, Canara Bank, Punjab National Bank, Central Bank of India, Union Bank of India, Allahabad Bank and Bank of Baroda, wrote the newspaper.
But the Department of Telecommunications (DoT) has reportedly refused to sign a tripartite agreement for the loan until the Supreme Court makes a judgment on the case. S Tel could not be reached for comment before the press deadline.
The newspaper explains that the DoT’s approval on loans secured by telcos is necessary because their licences are considered as surety.
But several cellcos may see their licences cancelled after failing to meet their roll-out obligations for 2G services. In a separate report, the Economic Times wrote that the DoT is looking to send 20 notices to several mobile operators about licence cancellations.
In early March, the ministry had already sent licences to both Idea Cellular and Etisalat DB asking them to justify why their licences should not be cancelled. They have reportedly been given 60 days to respond.
