Telcos' stressed assets: IBA tries to overcome the stumbling blocks

The Indian Bank Association (IBA) has asked the Department of Telec­om­m­unications (DoT) to push the Reserve Bank of India (RBI) to consider spectrum licence as a ‘secured asset’ and al­so allow ‘carved out resolution’ of various components of the telecom service providers’ operations under the IBC or outside the process. Under the existing rules, the resolution is for the entire firm which could include spectrum, tower, and real estate among others.

The IBA’s request highlights the roadblocks in resolving stress assets in this sector under the IBC, a fact reflected in the challenges faced both in the Aircel and Reliance