RETAIL INFLATION AT 16-MONTH HIGH
India’s retail inflation spiked to a 16-month high of 4.62% in October on costlier food items, reducing the headroom for a rate cut by the RBI in its monetary policy due next month. Inflation based on Consumer Price Index (CPI) was 3.99% in September. The inflation in the food basket spiked to 7.89% in October 2019 as against 5.11% the preceding month.
Vodafone Group Plc chief executive officer (CEO) Nick Read has written to Prime Minister Narendra Modi that India remains a key market for his company and that he is confident of the India growth story, a person aware of the matter said.
“Read has sent a letter to the PM and other senior government officials to clarify that some of the coverage, particularly in India, has been distorted. Neither he nor his team spoke to any Indian media. Quotes were attributed to him that he never made,” the person cited above said on condition of anonymity.
Mint has not seen a copy of the letter. Emails sent to Vodafone Group and the telecom ministry remained unanswered.
“Read spoke specifically about the financial stress in telecom sector in India and that situation had become critical,” this person said, adding the group appreciates the government’s efforts to set up a special panel to suggest relief measures.
The letter comes a day after news reports cited Vodafone Group as saying its Indian venture may be headed for liquidation unless the government eases off on demands for mobile spectrum fees.
“If you don’t get the remedies being suggested, the situation is critical,” Read said at a press round-table in London on Tuesday. “If you’re not a going concern, you’re moving into a liquidation scenario—can’t get any clearer than that,” Read said, according to a report by Reuters on 12 November.
“Financially, there’s been a heavy burden through unsupportive regulation, excessive taxes and on top of that, we got the negative Supreme Court decision,” the Reuters report said citing Read.
His statement comes even as Vodafone Idea and rival Airtel are fighting for survival following a body-blow from the Supreme Court verdict which upheld the Union government’s definition of revenue, which requires these telcos to pay past dues to the government—Bharti Airtel’s dues are roughly ₹21,682 crore, while Vodafone Idea will need to cough up at least ₹28,309 crore.
In contrast, Jio’s dues are just ₹13 crore. There is no other private operator left in the sector.