Sistema Shyam, the telecom service provider, has got a showcause notice from the Department of Telecommunications (DoT) for not meeting rollout obligations.
“We have received the letter from the government and will reply to it within the stipulated time, that is 15 days,” said Vsevolod Rozanov, president and CEO.
Russia’s Sistema holds 74 per cent stake in the joint venture, with the Shyam Group having 23.5 per cent. DoT has sent notices to telecom companies that have not fulfilled rollout obligations, asking them to reply within 15 days or pay damages.
The Telecom Regulatory Authority of India had recommended cancelling 69 telecom licences, including 10 held by Sistema Shyam, for not meeting these obligations. Sistema Shyam got its licence in 2008.
Meanwhile, the company announced it would complete a 20 per cent stake sale to the Russian government for $600 million by the first quarter of next year. The Russian government had approved doing so in September. The money will be paid in the form of Indian rupees, held in accounts representing the Indian government’s debt to the Russian Federation.
Sistema Shyam has also signed a letter of mandate with Russia-based Gazprombank for a loan of $200 million.
Rozanov said the company’s investments in India were on track and an Initial Public Offer of equity may happen next year, depending upon the market conditions.
It offers services in 12 telecom circles and expects to start in the remaining ones by next year. It plans to launch services in UP (East), UP (West) and Gujarat by the end of this month.
