Department of Telecommunications creates investment facilitation centre

MUMBAI: The Department of Telecommunications (DoT) has created an investment facilitation centre for the sector that is under financial stress with debt of nearly Rs 5 lakh crore and falling returns.

According to a notice on DoT’s site on Tuesday, KK Sahara, director (IP) and Manish Shukla, ADET (IP), will be in charge of the cell.

The move comes at a time when the sector is sagging under a debt and the steep price war after Reliance Jio's launch last September has forced telcos to consolidate amid sharply falling returns on capital employed.

Vodafone, which has been among the highest foreign direct investors in the sector through its local telecom unit, has decided to deconsolidate its India business, spooked by the brutal competition which has dragged it’s financials.