Licence cancellation a bolt from the blue, says Birla

The usually reticent chairman of the $35-billion Aditya Birla Group, Kumar Mangalam Birla, said on Tuesday cancellation of Idea Cellular’s licences was “a bolt from the blue”.

The Supreme Court in a recent move cancelled 122 licences of eight telecom companies granted by former Telecom Minister A Raja in 2008. Nine of Idea’s licences were also cancelled. Birla said it was unfortunate to club Idea with the 2008 licencees, as it had applied for licences in 2006. “We were passed over and clubbed with those who were given licences in 2008. Our situation is different. Like everyone else, we are looking to unwind the situation, if at all,” he said.

 

Idea would be trying for some sort of remediation, but Birla did not mention the course of action. He said they would wait and watch the government’s move — if it would come up with a re-auction, the price and the future of existing infrastructure. “It is still early to comment on whether we will participate or not,” Birla said. He did not comment on the possibility of filing a review petition on the SC verdict. But the group will remain “committed to the telecom sector from a long-term point of view”, he added.