Vodafone Idea has been facing a cash crunch situation because of the massive financial debt. The supreme court has already ordered the telco giant to pay the enormous AGR amount of Rs 53,000 crore to DoT before the final hearing which is scheduled on March 17, 2020. However, the telco has clearly stated that they will be forced to shut down operations if no relief is given by the government. To clear off the stress from the telco, CEO of Vodafone Group Plc Nick Read is planning a visit to India around March 6 and have a meeting with the Telecom Minister Ravi Shankar Prasad to discuss the unfavourable verdict by the supreme court along with solutions to ensure that Vodafone Idea stays in the market.
Vodafone Idea Has to Pay Rs 53,000 Crore to DoT
Vodafone Idea is one of the telcos which has been facing huge trouble from the supreme court’s verdict. As per the estimates of DoT, the telco giant has to pay Rs 53,000 crore to DoT. However, Vodafone Idea self-assessed dues stand at Rs 23,000 crore out of which Rs 7,000 crore is the principal amount. Till date, the telco has just paid Rs 3,500 crore as AGR dues. However, Vodafone Idea is planning to clear of Spectrum dues worth Rs 3,000 crore which the company acquired back in 2014 auctions. This will reduce the financial liability of the telco up to some extent.
Vodafone Idea Seeks Government Help
The telco has appealed the government to give relief measures else they will be forced to shut down their operations. The telco has requested the government to adjust their GST refunds worth Rs 8,000 crore towards AGR dues. Also, the telco has asked for reduction in license feed and spectrum usage charge, which will depend upon the overall AGR dues.
Not only this, Vodafone Idea has requested the government to set up a minimum price of Rs 35 for 1GB mobile data along with Rs 50 per month as connectivity charges which would revive the telecom sector. To ensure that telco stays in the market, the government is planning to create stress funds which will offer loans on easy terms.
