The government has decided not to compel telecom companies to meet the January 23 deadline to pay their dues after Vodafone Idea and Bharti Airtel asked for more time. The aforesaid date was set by the Supreme Court. The two telecom companies, along with Tata Teleservices are awaiting hearing on their modification pleas before paying their dues. While Vodafone Idea owes over Rs 50,000 crore to the department of telecommunications (DoT), Bharti Airtel has Rs 35,586 crore in outstanding dues. Tata Teleservices, which does not operate a mobile network anymore after having sold its business to Airtel, owes the DoT Rs 14,000 crore.

Apart from telecom companies, DoT has sought dues from non-telecom companies as well. These include GAIL (India) (Rs 1.72 trillion), Oil India (Rs 48,000 crore), Power Grid Corporation of India (Rs 22,168 crore), Gujarat Narmada Valley Fertilizers and Chemicals (Rs 15,019 crore), and Delhi Metro Rail Corp. (Rs 5,841 crore plus interest). Like telecom companies, GAIL, Power Grid, Oil India and Delhi Metro Rail Corp. have also filed a modification plea. Meanwhile, Gujarat Narmada is seeking legal advice on DoT’s demand notice.

Takeaway-

The outbreak of the Wuhan coronavirus has the potential to derail the economic growth in China. This crisis comes in a week of the country having signed a trade deal with the US. Some analysts are calling the outbreak of the virus as the first ‘black swan’ event of 2020. Several scholars have cited the trade war with the US and protests in Hong Kong as the black swan events of 2019. Though the virus originated in Wuhan, it has already spread to 20 other cities, and is expected to negatively impact the already fragile growth in the Chinese economy. Even though China was involved in a trade war with the US, its economy was able to grow at a 6.1% pace because of the pro-growth policies adopted by the government.

Takeaway-