Sitharaman: Want no company to shut operations due to telecom stress

Finance Minister Nirmala Sitharaman on Friday said that central government does t want any telecom firm to shut down its operations due to financial issues and wants every company to flourish.

"We want company to shut its operations. We want everyone to flourish," she told reporters here when asked about stress in telecommunications sector.

queries were regarding major telecom firms Vodafone Idea and Airtel which posted a combined quarterly loss of about Rs 75,000 crore as y were hit by statutory dues after a recent Supreme Court ruling.

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minister said that Committee of Secretaries (CoS) dealing with financial problems faced by telecom firms has t taken any final decision on matter. Asked if government was considering dues coming from telecom firms after Supreme Court ruling in case as part of revenue, she said, "I am t hurrying to take any decision on this."

After Supreme Court ordered telecom companies to pay as much as Rs 1.42 lakh crore in past statutory dues, Centre h set up CoS under cabinet secretary to suggest measures to mitigate financial stress in sector last month.

FM: plans to cut spending on welfare schemes

Meanwhile, Sitharaman said that Centre has plans to cut spending on welfare schemes and will encour all departments of government to spend entire funds provided in Budget. Finance Minister said that central government is considering proposals to increase insurance limit from current Rs 1 lakh on deposits in banks. She said finance ministry would move amendments in this regard during upcoming winter session of Parliament if Cabinet approves proposals.

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"Finance Ministry is considering proposals to increase insurance limit from current Rs 1 lakh on deposits in banks. If cabinet approves, we would like to move amendments in upcoming winter session," she said. An insurance limit is maximum amount of money an insurer will pay toward a covered claim.

Sitharaman on PMC Scam

Sitharaman said that she held discussions with RBI and or ncies on if any of confiscated properties of promoters of crisis-hit Punjab and Maharashtra Co-operative (PMC) Bank could be brought under RBI and payback to customers of bank.

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In September, RBI restricted activities of PMC Bank for six months and asked it t to grant or renew any loans and vances, make any investment or incur any liability, including borrowing of funds and acceptance of fresh deposits after an alleged fraud of Rs 4,355 crore came to light. central bank h initially capped deposit withdrawal at Rs 10,000 but later raised it to Rs 50,000.

Enforcement Directorate (ED) has seized and identified movable and immovable assets worth more than Rs 3,830 crore owned by HDIL in connection with case. PMC Bank is a multi-state scheduled urban cooperative bank with operations in Maharashtra, New Delhi, Karnataka, Goa, Gujarat, Andhra Presh, and Mhya Presh. With a network of 137 branches, it ranks among top 10 cooperative banks in country.

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(with ANI inputs)