Panel scraps UTL plea for royalty waiver : Decision to be forwarded to NTA by next week
KATHMANDU, NOV 18 -
The Appellate Committee of the Ministry of Information and Communications has said that it will forward its decision to reject United Telecom Limited (UTL)’s request for waiver of its royalty dues to the Nepal Telecommunications Authority (NTA) by the next week.
On September 16, the committee scrapped a UTL’s appeal that sought annulment of NTA’s claim of royalty dues worth Rs 1 billion from the telecom operator.“”We will forward our decision within the next week to NTA”” said Dhan Raj Gyawali, under secretary and member of the committee, adding that forwarding verdict took a little bit more time as it was a legal issue.
Earlier in March, NTA had issued a letter to UTL, the first private sector telecom service operator, with a warning that it could scrap its operating license if it failed to clear its outstanding dues as per the rules. Later in April, UTL filed a petition against the NTA’s decision.
UTL has been reluctant to pay the dues, claiming that it has incurred losses amid stiff competition in local telecom market. Few months ago, high-level UTL officials had also demanded that the government renegotiate the royalty to be paid at a meeting of the parliamentary Public Accounts Committee.
The company has been claiming that it faced losses of over Rs 4 billion during the halting of services for 63 days during the royal regime.
As recently signed Bilateral Investment Promotion and Protection Agreement with India does not incorporate provision of compensation of the losses incurred prior to the signing of the pact, UTM cannot claim compensation for the losses too.
According NTA, UTL has to pay Rs 952.16 million in royalty dues, including Rs 56.16 million for payable for the limited mobility and data services, as of fiscal year 2009-10. The outstanding dues amount will go up further after the company submits its report for the last fiscal year by mid-January 2012.
According to a senior NTA official, if the government wants, the royalty dues can be waived through a Cabinet decision.“”We, as a regulator, will act as per the law and decision of the panel”” the official said, adding that they would provide certain time to UTL clear the dues as soon as they receive the panel’s decision.
Source: Kantipur
