Seeking to protect its $3 billion investment in India, Russian group Sistema has sought Prime Minister Manmohan Singh's intervention to ensure that its "legitimate interests" are not disregarded during the formulation of telecom policies.
In a letter to Singh, Sistema Chairman Vladimir Evtushenkov said re-instatement of SSTL's licences will reduce the losses to the investments made by the company and its owners in the Indian telecom industry.
"I ask for your support and intervention to ensure that the legitimate interests of SSTL and its stakeholders are not disregarded during the formation of the telecom sector policies," Evtushenkov said.
Telecom licences of Sistema Shyam Teleservices (Sistema's JV in India with Shyam Group) were among the 122 cancelled by the Supreme Court in February this year.
SSTL, in which the Russian government also has a stake of 17.14 per cent, offers CDMA services in the country under the MTS brand name.
Evtushenkov is visiting India tomorrow as part of a delegation led by Russian Deputy Prime Minister Dmitry Rogozin. The delegation is expected to discuss, among others, the issue of SSTL's licence cancellation by the Supreme Court.
Expressing concern over the recent developments, he said SSTL's shareholders have invested over USD three billion to create a CDMA network and has more than 16 million users.
"We have invested with a long-term view and to date have incurred billions of dollars in losses," he added.
Saying that time is running out, Evtushenkov said no viable solution for protecting their investments and helping minimise their losses "appears to be in sight".
He also raised concerns about the reserve price for spectrum auction, suggested by sectoral regulator Trai, saying it was "arbitrarily high".
Rogozin will be accompanied by a high-level delegation which includes Director of Federal Service for Military and Technical Cooperation and First Deputy Director General of "Rostechnologii" State Corporation as well.
Rogozin, who was recently appointed Co-Chairman of the IRIGC for Trade, Economic, Scientific, Technical and Cultural Cooperation, will be on his first visit to India as Deputy Prime Minister.
The visiting dignitary are also expected to meet Defence Minister A K Antony and the Commerce and Industry Minister Anand Sharma.
