The Cellular Operators Association of India (COAI) on Wednesday wrote a complaint to Telecom Secretary Anshu Prakash on non-payment of pending dues of around ₹20,000 crore by public sector units (PSUs), especially BSNL and MTNL.

It said there has been a severe disruptive impact on the global supply chain, demand and 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 payments and taxes.

“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 around ₹ 20,000 crore which is pending since long. This is adding to critical financial woes of our member companies who are facing serious constraints in terms of cash flows due to slowing economic activities in the current situation,” Rajan S Mathews, Director General, COAI wrote in the letter.

The letter that BusinessLine has seen, also said that this huge scale of delays and breach of contract commitments by PSUs are highly detrimental to global business sentiment towards India.

“At the time when government is doing its utmost through 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,” Mathews said.

He requested an urgent intervention of Department of Telecom in instructing all concerned PSUs for the earliest release of their respective outstanding dues towards all telecom and network equipment manufacturers, infrastructure providers and other vendors related to telecom services.

He added that these companies have been a long-term partner of various PSUs including BSNL and MTNL, and have been providing respective material, support and services to these PSUs for all their telecom network and services requirements.