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2G licence cancellation: No material impact on PSU banks

Last Updated: Monday, March 26, 2012 - 16:22

New Delhi: The government has said cancellation of 2G licences by the Supreme Court last month did not have any material impact on public sector banks (PSBs).

"... the cancellation of (2G) licences does not have any material impact on public sector banks," Minister of State for Finance Namo Narain Meena had said in written reply to the Lok Sabha on Friday.

"The cancelled licences represent certain circle or areas only. Most of the loan accounts were regular as on February 1, 2012, and by and large secured in the form of various tangible and other securities," he said.

The Supreme Court cancelled 122 2G spectrum licences granted by former telecom minister A Raja on the ground that they were issued in a "totally arbitrary and unconstitutional" manner.

The court also directed regulator Telecom Regulatory Authority of India (TRAI) to make fresh recommendations on allocation of 2G licences.

He also said that government is closely monitoring the financial impact of the order of the Supreme Court on the banking sector in general and PSBs in particular.

PSBs have sanctioned loans aggregating Rs 18,571.24 crore to nine companies affected by 2G verdict.

Of this, he said, PSBs sanctioned Rs 6,664.20 crore to Idea Cellular, Rs 4,146.62 crore to Tata Teleservices Ltd and Rs 3,220 crore to Videocon Telecommunicatiions Ltd.

In response to another reply, Meena said, four public sector general insurance companies has launched Preferred Provider Network (PPN) on July 2010, with a view to provide quality health care at an affordable cost and at the same time help the insured to optimally utlise the sum insured.

"The objective of he (PPN) initiative was rationalization of empanelment of hospitals and standardisation of rates for specified procedures," he said.

"Though many many hospitals agreed to join the Network to provide cashless facility, there were others who initially had some reservations in joining the same. However, after negotiations all issues were sorted out," he said.

Presently, 928 hospitals have joined the PPN network in the country. Of this, 188 hospitals in Delhi, Mumbai 165, Bangalore 122, Chennai 125, Ahemdabad 91 and Hyderabad 87, he said.


First Published: Monday, March 26, 2012 - 16:22
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