Cell operators to pay up MTNL

MUMBAI, OCT 27: Both cellular operators in Mumbai, Hutchison Max Telecom and BPL Mobile Communications, have given a written undertaking to Mahanagar Telephone Nigam Ltd offering to furnish a bank guarantee for the pending security deposit. A top source in MTNL confirmed that the PSU had received letters to this effect on Tuesday.

The security deposit is approximately Rs 2.5 crore for each of the operators for 1997-98. The deposit amount is the average monthly call charges of the operator after a year of operations as per the licence conditions. A decision on whether bank guarantees can be accepted in lieu of the security deposit is expected in a day or two, the source said.

However, a new problem has now cropped up with the auditor CAG insisting on a 20 per cent surchage. The demand notice was sent to the operators on May 98 and since both parties did not make the payment within 15 days of receipt of the notice they will now have to pay an interest of 20 per cent on the amount as per the licenceconditions, the source said.