Telecom operator Idea Cellular is in talks with private equity firms to raise fund, a top official of the company said today.

“I have had chance in last 15 days to meet serious investors, including Fidelity, Blackrock. Almost everybody is taking it (penalty) as part of debt equity for companies, affecting our ability to raise more cash flow,” Idea Cellular Managing Director Himanshu Kapania said at an open house discussion chaired by Telecom Minister Kapil Sibal here.

During the meeting, Kapania raised concern on rising contingent liabilities in balance sheet of the company due to penalty and also issue with Ministry of Finance where the company has not been allowed to adjust licence fee it pays to government as tax.

“Most of the telecom analysts have started adding debt and contingent liability as a total liability of the company,” he said.

The Telecom Minister has assured industry that he will resolve penalty issues soon where Department of Telecom officials have been directly imposing maximum penalty of Rs 50 crore for even minor violations.

Shares of Idea Cellular closed at Rs 168.15 apiece, up 0.69 per cent from their previous close on the BSE today.

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