SSTL gets show cause notice for missing roll out obligations

"We have received the letter from the Government and will reply to it (letter) within the stipulated time that is 15 days,"  SSTL President and CEO Vsevolod Rozanov told reporters here.

Sistema, leading public diversified corporation in Russia and the CIS region, has a 74 per cent stake in the joint venture with the Shyam Group. Shyam Group holds 23.5 per cent stake and the rest 2.5 per cent being public partake.

Department of Telecommunication (DoT) has sent letters to companies that have not fulfilled rollout obligations, asking them to reply within 15 days or pay liquidated damages.According to the sources, the company may be asked to pay liquidated damages of about Rs 11 crore.
India's telecom regulator TRAI has recommended cancelling 69 telecom licences, including 10 held by SSTL, for failing to meet rollout requirements.

The company's services are operational in 12 circles at present and it expects to start services across the remaining circles by next year. It plans to launch services in UP (East), UP (West) and Gujarat by the end of this calendar year.

Besides, on the company's listing on the Indian bourses, Rozanov added," The company will list the company on the Indian bourses by the second half of next year.