Telecom major Telenor writes off Rs 3,500 crore India assets

May 1, 2012

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New Delhi, May 1: Norwegian telecom major Telenor on Monday wrote off its remaining fixed and intangible assets in India worth Norwegian Krone 3.9 billion (over $680 million or Rs 3,500 crore) saying "the uncertainty has increased significantly" following the Supreme Court's ruling in February to cancel Unitech Wireless's 22 licences and the recent Trai recommendations on the re-auction of 2G licences and spectrum.

The statement from the company came a day after the company's Asia head Siggve Brekke told TOI that Telenor was considering exiting India if the regulator's recommendations were accepted by the government in their current form.

It joins Sistema and Etisalat in taking a hit on their balance sheets due to their exposure to India. All these companies have been affected by the Supreme Court order. Etisalat had written off around $820 million of its investment, while Sistema, which like Telenor is still to announce a pullout, took a $700 million hit. So, the three companies between them have written off close to Rs 15,600 crore due to their India exposure. Telenor and Sistema have also threatened to initiate international arbitration and seek damages from the government.

The Norwegian firm holds 67% stake in Unitech Wireless which was controversially awarded licences and spectrum by former telecom minister A Raja, who is facing charges of criminal conspiracy and corruption. In February, the company had announced a write down of around $730 million, taking the total to over $1.4 billion (around Rs 7,200 crore at the current exchange rate).

"Telenor is working actively towards Indian authorities to bring forward an acceptable framework for continued operations. As a precautionary measure, Telenor ASA has decided to write down the remaining fixed and intangible assets in India amounting to NOK 3.9 billion. The write down will be included in Telenor's results for the first quarter 2012, to be presented on 8 May 2012. After the write down, Telenor has no further accounting exposure related to India as of 31 March 2012," the company said in a statement on Monday.

In a separate development a few hours later, the Telecom Commission decided to seek certain clarifications from Trai. "We wanted to understand the basis on which this reserve price has been arrived at... what is the likely impact on tariff," telecom secretary R Chandrashekhar said. A ministerial panel is also due to meet on Tuesday to discuss spectrum auction although a final view is expected around mid-May.

On Sunday, Brekke had cited various problems with Trai recommendations, including the rural rollout obligations. "In totality, if this is becoming policy, then the government is forcing us to leave. It's quite clear that it will not work for us... We are willing to write off the Rs 14,000 crore that we have invested," he had said.

Brekke's outburst coincided with petitioning done by the telecom companies to get the government to dilute the proposals. But given the controversy around allocation of scarce natural resources, such as spectrum and coal, below the market price, it is unlikely that the government will risk reducing the floor recommended by Trai.

The telecom regulator has suggested that the government start the auction with a base price of Rs 3,600 crore per megahertz, which translates into over Rs 18,000 crore for 5 Mhz, nearly 10 times higher than what Raja had charged for licence and spectrum.

Brekke was also critical of the move to auction only 5 Mhz spectrum and termed it as a "trial balloon" to set the price level for future rounds.

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September 17,2024

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Union Home Minister Amit Shah on Tuesday, September 17, said the Waqf (Amendment) Bill, 2024 will be passed in the Parliament in the coming days. He said the Bill is committed to the management, preservation and misuse of Waqf properties.

The Joint Parliamentary Committee (JPC) on the Waqf Bill will meet from September 18 to 20. The JPC is scrutinising the Waqf (Amendment) Bill, 2024 which seeks to amend the Waqf (Amendment) Act of 2013.

On September 14, a Muslim organisation headed by Congress MP Tariq Anwar demanded the rejection of the Waqf (Amendment) Bill. The organisation alleged that the proposed legislation is an "indirect attempt to seize control of Muslim religious properties".

The All India Qaumi Tanzeem submitted 14 pages of suggestions and objections to the bill to the JPC through the Lok Sabha Secretariat.

The Bill was introduced in Lok Sabha on August 8.

On September 11, a Rajya Sabha panel summoned Minority Affairs Ministry officials to explain reasons for the delay in completing the process for framing subordinate legislation under the 2013 Waqf law.

The new bill seeks to change the registration process for Waqf properties through a centralised portal. It proposes several things, including establishing a Central Waqf Council alongside state Waqf Boards with representation to Muslim women and non-Muslim representatives.

A contentious provision of the Bill is the proposal to designate the district collector as the primary authority in determining whether a property is classified as Waqf or government land.

The Waqf (Amendment) Bill also aims at renaming the act to the Unified Waqf Management, Empowerment, Efficiency and Development Act, 1995.

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September 15,2024

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New Delhi: Two days after he was granted bail and walked out of prison after six months, Delhi Chief Minister Arvind Kejriwal announced his shock resignation from the top post at a party meeting this afternoon. "Two days later, I will resign as Chief Minister. I will not sit on that chair till the people announce their verdict. Elections in Delhi are months away. I got justice from the legal court, now I will get justice from the people's court. I will sit on the Chief Minister's chair only after the order of the people," he said. 

"I want to ask the people of Delhi, is Kejriwal innocent or guilty? If I have worked, vote for me," he said, adding that a meeting of AAP MLAs will be held within the next two days to choose the new Chief Minister for the national capital.

The Aam Aadmi Party (AAP) leader said a member of the party will be named Chief Minister after his resignation. He said he would go among the people and ask for their support. Mr Kejriwal also demanded that the elections in the national capital, scheduled for February, be held in November along with the polls in Maharashtra.

In his address to the AAP workers, Mr Kejriwal launched an all-out attack against the Narendra Modi government and said it was more dictatorial than the British.

He said he did not resign as Chief Minister despite being arrested because he wanted to save democracy. "They have registered cases against (Karnataka Chief Minister) Siddaramaiah, (Kerala Chief Minister) Pinarayi Vijayan, (Bengal Chief Minister) Mamata didi (Banerjee). I want to appeal to non-BJP, do not resign if they register cases against you. This is their new game," he said.

Mr Kejriwal said he had also spoken to former Deputy Chief Minister Manish Sisodia about the issue. Mr Sisodia too was recently granted bail in connection with corruption allegations surrounding Delhi's now-scrapped liquor policy. "I spoke to Manish, he too has said that he will handle the post only after the people say we are honest. My and Sisodia's fate are in your hands now," he said.

Responding to the shocking development, BJP's Harish Khurana questioned why the AAP leader is creating a drama. "Why after 48 hours? he should resign today. In the past too, he has done this. People of Delhi are asking, he can't go to the secretariat, can't sign documents? What is the point then?" Asked if the BJP was ready for early polls, Mr Khurana replied, "We are ready, whether it is today or tomorrow. We will return to power in Delhi after 25 years."

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News Network
September 17,2024

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As the Modi-led NDA government completes the first 100 days of its third term, the Congress party has launched a scathing attack, dubbing it as the "U-Turn Sarkar" for its failures and policy reversals.

At a press conference in Delhi, Congress spokesperson Supriya Shrinate highlighted what she called "100 days of instability, indecisiveness, and immaturity," accusing the Modi government of damaging critical sectors of the economy and public infrastructure.

Shrinate criticised the government's handling of the economy, which she described as being in "dire straits".

She argued that under Modi's leadership, sectors such as agriculture, youth employment, and infrastructure have been neglected. "These 100 days have been very heavy on the country's economy, farmers, youth, women, infrastructure, railways, and institutions," she said, adding "It has become clear that Narendra Modi has no vision to deal with the country's problems."

She went on to debunk the government's claims of progress in infrastructure development, citing multiple instances of structural failures in key projects.

“The airports inaugurated by Narendra Modi--from Jabalpur to Delhi and Rajkot--could not even withstand a single monsoon,” Shrinate pointed out. She also referenced failures such as:

•    Atal setu: Constructed at a cost of Rs18,000 crore, the bridge developed cracks soon after its inauguration.

•    Sudarshan setu in Gujarat: Opened in February 2024, it also developed cracks within months.

•    Shivaji statue collapse: The iconic statue of Chhatrapati Shivaji Maharaj was destroyed within eight months of being unveiled, an event Shrinate described as an "insult to Shivaji Maharaj."

•    Ram mandir water leakage: The sanctum sanctorum of the Ram Mandir, a symbol of faith for millions, was found to be leaking during the monsoon.

•    "Who will take accountability for these incidents?" Shrinate asked, questioning the government's competency in executing large-scale projects.

•    On railway safety, Shrinate accused the government of overseeing a period marked by frequent accidents and derailments.

•    "There have been 38 railway accidents in 100 days, resulting in 21 deaths," she stated. Despite the public outrage following the tragic Balasore accident, which killed nearly 300 people earlier this year, the Congress spokesperson said that the government has failed to take effective measures to improve rail safety.

•    She criticised the slow implementation of Kavach, an anti-collision device, stating, “The reality is that even after 21 deaths, Kavach is being installed at a pace of 2 km per year, while the Railway Minister shamelessly calls these 'minor' incidents.” Shrinate’s remarks come amidst mounting public concern over the Modi government’s inability to secure rail travel in one of the world’s largest railway networks.

In addition to infrastructure and safety concerns, Shrinate accused the Modi government of making hasty policy decisions, only to later backtrack under public pressure. "If any of your decisions affect the country negatively, it won’t become law because the government will take a U-turn on it," she said. Among the key policy reversals Shrinate cited were:

•    Lateral entry: A controversial policy of hiring private-sector professionals for bureaucratic roles, which was quietly shelved.

•    Broadcast Bill: Withdrawn after fierce opposition, highlighting the government's poor handling of policy legislation.

•    Waqf Board Bill: Another example of the government's failure to gauge the impact of its decisions.

•    NPS to UPS: Indexation policy changes that were hastily reversed after protests from key stakeholders.

"Narendra Modi's first 100 days symbolise not just U-turns, but a government that is fundamentally unsure of its direction," Shrinate remarked.

"In 100 days, 104 heinous crimes have been committed against women, in which there are 157 victims. Women are raped publicly in BJP ruled states but Narendra Modi doesn't say a word on this. But how will you speak, because you are the one who stood with those who sexually exploited the daughters of the country," she added.

The Congress's sharp critique of the Modi government's first 100 days has set the tone for the coming months, as the opposition gears up for a series of state elections and prepares for the 2024 general election.

"The country cannot afford this level of instability, immaturity, and incompetence," Shrinate concluded, calling on citizens to hold the Modi government accountable for what she described as its "endless U-turns and policy failures."

In these 100 days, Congress has made clear that it will focus on highlighting the government’s missteps in the economy, public safety, and governance, presenting itself as a viable alternative in the face of what it calls "a government in retreat."

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