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MoIC hesitant to take action against UTL

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KATHMANDU, Jan 3: The Ministry of Information and Communications (MoIC) on Tuesday cold-shouldered Nepal Telecommunication Authority (NTA)´s call for support for taking action against United Telecom Limited and instead initiated consultations at high-level to deal with its royalty issue.



As a result, no action was taken against the private operator that failed to clear outstanding dues to government, which stands at Rs 952.37 million.[break]



NTA on Monday had sought support of the MoIC to shut down UTL´s basic services.



“It is a sensitive issue as the company concerned happens to be a foreign joint venture. We are holding different meetings and consultations before initiating any action in this direction,” MoIC Secretary Shreedhar Gautam said. Gautam said they were studying NTA´s letter and would initiate necessary action at the earliest.



NTA is waiting for the ministry´s green signal to block basic services of UTL that include wireless fixed line, leased line, STD and ILD gateway.



Meanwhile, Chief Secretary Madhav Prasad Ghimire on Tuesday called Secretary Gautam over phone and enquired about the royalty issue. He has reportedly asked officials to be prepared for a high-level meeting.



MoIC has also asked NTA to prepared a detailed report on UTL´s royalty issue and forward it to the ministry at the earliest.



NTA had formally written to UTL to settle all the outstanding royalty which stands at Rs 952.37 million on Nov 29, warning it of shutting down the services if the dues are not cleared.



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