Etisalat DB seeks release of Rs 160 cr PBG, moves TDSAT

Claiming it has completed roll-out of network in 11 circles within the stipulated time, new operator Etisalat DB today approached the telecom tribunal TDSAT requesting a direction to the DoT to release its performance bank guarantee (PBG).

Etisalat DB, a JV between DB realty and UAE-based telecom major Etisalat, has contended that it has completed the criteria of roll-out obligations in the 11 circles and now the PBG of Rs 160 crore, submitted at the time of spectrum allotment, should be released.

The Telecom Disputes Settlement and Appellate Tribunal has asked the DoT to clarify its stand as the financial guarantee of the Etisalat was going to lapse in January 2012 and the banks have to be intimated a month prior to that.

Etisalat has given a PBG of Rs 212 crore for the spectrum alloted to it in 15 circles.

According to the company, it has already completed installation of 50% infrastructure in 11 circles within a period of three years and as per the clauses of licence condition, Etisalat performance bank guarantee of Rs 160 crore should be released.

The firm is still in process to complete the roll-out obligations in Mumbai, Maharashtra, Bihar, Delhi and Madhya Pradesh.

During the proceedings, senior advocate Ramji Srinivasan appearing for Etisalat DB submitted that the company has written several letters to the DoT on this issue, however, it did not get reply of any one.

He further contended that Telecom Enforcement Resource and Monitoring (TERM) Cell of DoT has also certified that the company has completed the roll out obligation.

The tribunal has directed to list the matter within a week for hearing.