Telenor writes off Indian assets; set to exit country
30 Apr 2012
Norwegian telecom operator Telenor ASA has decided to write down its assets in India, both fixed and intangible, amounting to 3.9 billion Norwegian kroner (Rs3,565 crore), the company said in a statement from Oslo today.
The company said it will write down (or treat as a loss) its Indian assets because it will be ''almost impossible'' to take part in the planned auction for mobile licenses cancelled by a Supreme Court order in early February. (See: SC cancels all 2G licences, orders fresh spectrum auction).
, which had serious ambitions of penetrating the Indian mobile telephony market, is perhaps the company worst affected by the apex court's decision.
The write-down on the permits and goodwill, which amounts to 2.6 billion kroner after non-controlling interests, will be booked in the first quarter of this year, the company said.
Striking a hopeful note, the statement added, ''Telenor is working actively towards Indian authorities to bring forward an acceptable framework for continued operations.''
Today's write-down follows a 4.2-billion kroner hit Telenor said it would take soon after the Supreme Court ordered the cancellation of telecom licences awarded in 2008, during the incumbency of the now jailed former telecom minister Andimuthu Raja. The company no longer has accounting value in its Indian assets after today's charge, it said.
