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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News Network
November 21,2024

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After the US prosecutors charged Gautam Adani with bribery and fraud, Congress reiterated its call for a Joint Parliamentary Committee (JPC) probe into the transactions of the Adani group, and hit out at Prime Minister Narendra Modi, alleging an "internal nexus" between him and "his favourite businessman."

Senior Congress leader Jairam Ramesh said the indictment of Gautam Adani and others by the US Securities and Exchange Commission validates his party’s call for a Joint Parliamentary Committee investigation.

The Congress has been pushing for the probe since January 2023, raising concerns over alleged irregularities involving Adani and his business dealings, said Ramesh.

Ramesh referred to the party’s “Hum Adani ke Hain” series, where 100 questions were raised about the alleged scams and the links between Prime Minister Narendra Modi and Gautam Adani.
He noted that the questions remain unanswered, reiterating the need for accountability in the matter.

The US prosecutors have charged Adani with deceiving investors by concealing information about his firm's solar energy project in India, which allegedly involved bribery.

Adani has been charged with securities fraud and conspiracy, according to an indictment unsealed on Wednesday. The case focusses on an agreement between Adani Green Energy Ltd. and another organisation to supply 12 gigawatts of solar power to the Indian government.

'BETRAYAL OF INDIAN INVESTORS'

Congress leader Pawan Khera described the allegations against Gautam Adani and his conglomerate as a “betrayal of Indian investors.”

Taking to X, Khera outlined the US charges, including claims that Adani’s group bribed Indian government officials between 2020 and 2024 to secure contracts. Citing media reports, he also pointed out that Gautam Adani personally met a government official to advance the scheme.

Khera referred to a March 2024 incident where the Adani Group allegedly misled the Bombay Stock Exchange and the National Stock Exchange, calling it a “grave violation of investor trust.”

He further highlighted a March 2023 FBI raid on the premises of Sagar Adani, Gautam Adani’s nephew, where electronic devices were seized as part of the investigation.

'SEBI NOT ABLE TO PROVE ANY CHARGES AGAINST ADANI'

Shiv Sena (UBT) leader Priyanka Chaturvedi criticised central probe agencies following US charges against Gautam Adani and others in an alleged bribery case linked to solar energy contracts.

Chaturvedi raised concerns about corporate governance and regulatory oversight in the country. “They talk about corporate governance, responsibility, and accountability. The industrialists should be asked to follow the rules and regulations, but even the agencies were defending him. The SEBI has not yet been able to prove charges against him,” she said, pointing to what she viewed as failures in ensuring accountability.

'BROUGHT DISREPUTE TO INDIA'

On US charges against Gautam Adani, AAP leader Sanjay Singh called for a probe against the industrialist. He said that the probe should be conducted by an investigation agency under the Supreme Court.

"Adani Group has brought disrepute to India. This is a very serious matter. The PM of India should come forward and answer this. All the pending matters against Adani should be probed by an investigation agency under Supreme Court monitoring, and all the corruption done by him, within and outside the country, should come out before the country and action should be taken against him," he said.

BJP DFENDS

BJP IT cell chief Amit Malviya responded sharply to the Opposition’s criticism regarding allegations involving Adani Green Energy and US-based Azure Power. He pointed out that the charges in the indictment are only allegations and emphasised, “The defendants are presumed innocent unless and until proven guilty.”

Malviya argued that the crux of the case concerns agreements to supply 12 GW of power to the Solar Energy Corporation of India (SECI), contingent on SECI securing power purchase agreements with state electricity distribution companies (SDCs).

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News Network
November 15,2024

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Union minister Amit Shah on Friday, November 15, said PM Narendra Modi will amend the Waqf Act despite opposition from leaders like Uddhav Thackeray and Sharad Pawar.

"Modi ji wants to change the Waqf Board law, but Uddhav ji, Sharad Pawar and Supriya Sule are opposing it," Shah said, addressing a rally at Umarkhed in Maharashtra's Yavatmal district.

"Uddhav ji, listen carefully, you all can protest as much as you want, but Modi ji will amend the Waqf Act," he said. Shah said there are two camps in the November 20 Maharashtra assembly polls, one of 'Pandavas' represented by the BJP-led Mahayuti and the other of 'Kauravas' represented by Maha Vikas Aghadi.

"Uddhav Thackeray claims that his Shiv Sena is the real one. Can the real Shiv Sena go against renaming Aurangabad to Sambhajinagar? Can the real Shiv Sena go against renaming Ahmednagar to Ahilyanagar? The real Shiv Sena stands with the BJP," Shah said.

"Rahul Baba used to say that his government would credit money in the accounts of the people instantly. You were unable to fulfil your promises in Himachal, Karnataka, and Telangana," he said.

Shah said the Mahayuti alliance has promised that women will get Rs 2,100 per month under the Ladki Bahin Yojana. "Kashmir is an integral part of India and no power in the world can snatch it away from us," Shah said.

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