RSM/COAI/2020/076 April 8, 2020 Shri Anshu Prakash Chairman Telecom Commission & Secretary (Telecom) Department of Telecommunications 20, Ashoka Road New Delhi – 110001 Subject: Reg- Distress of Telecom & Network Equipment Manufacturers, Infrastructure Providers & Other Vendors Due to Non-Payment of Pending Dues from Public Sector Units Respected Sir, 1. We wish to take this opportunity to apprise you that COAI represents all leading telecom and network equipment manufacturers, E-commerce, Digital content providers, infrastructure providers & technology partners. All leading players in these segments i.e. Nokia, Huawei, Ericsson, ZTE, Sterlite, Indus, Cisco, Juniper, Qualcomm, Apple, Ciena, ECI, Facebook, Google, Amazon and ACT are prominent members of COAI. 2. It is pertinent to mention that most of our member companies in the segments of Telecom & Network Equipment Manufacturers and Infrastructure Providers have been a long-term partner of various Public Sector Units (PSUs) including BSNL, MTNL etc. and have been providing respective material, support and services to these PSUs for all their telecom network and services requirements. 3. In the current situation regarding the outbreak and spread of Covid-19 pandemic across the country, our members are playing a critical role and putting their best efforts in addressing the challenges being faced by individuals, corporates, governance services, emergency & utility services etc. However, the business continuity of these players has been severely impacted on account of the wide spread of this disease across the globe and the restrictions imposed by the Governments to combat the situation. 4. A severe disruptive impact has been on the global supply chain, demand & supply elements and most importantly on the cash flows of the companies due to slowing economic activities, which in turn are having an impact on all payments including to those for employees, interest, loan repayments and taxes. 5. In addition to the aforesaid severe adverse impact on account of COVID-19, we would also bring to your kind notice that our members have been supporting various PSUs in delivering un-interrupted services, despite non-payment of their huge pending dues. However, the situation has become highly critical now with total outstanding dues from these PSUs amounting to approx. INR 20,000 crore which is pending since long. This is adding to critical financial woes to our members companies who are facing serious constraints in terms of cash flows due to slowing economic activities in the current situation. 14, Bhai Veer Singh Marg, New Delhi – 110 001 tel: +91 - 11- 23349275 fax: +91 - 11 - 23349276 e-mail: [email protected] website: www.coai.in 6. Also, this huge scale of delays and breach of contract commitments by Public Sector Units is highly detrimental to global business sentiment towards India. At the time when Government of India is doing its utmost through Hon’ble Prime Minister and Finance Minister’s efforts to attract foreign investment in the country, such issues give a negative signal to global investors on the risks of investing in India and to enter into contracts with government entities. 7. In view of the above, we kindly request the urgent intervention of your esteemed office in instructing all concerned Public Sector Units for the earliest release of their respective outstanding dues towards all Telecom & Network Equipment Manufacturers, Infrastructure Providers & Other Vendors Related to Telecom Services. 8. Considering the sensitivity of this matter, we are hopeful that our submissions will merit your consideration and urgent support. Regards, Rajan S. Mathews Director General Copy To: 1. Smt. Anita Praveen, Additional Secretary (T), Department of Telecommunications, New Delhi 2. Sh. P.K. Sinha, Member (Finance), Department of Telecommunications, New Delhi 3. Sh. Hari Ranjan Rao, Joint Secretary (T), Department of Telecommunications, New Delhi 14, Bhai Veer Singh Marg, New Delhi – 110 001 tel: +91 - 11- 23349275 fax: +91 - 11 - 23349276 e-mail: [email protected] website: www.coai.in .