Vodafone CEO Read meets RS Prasad, FM
VODAFONE IDEA’S SELF ASSESSMENT PEGS AGR DUES AT ₹21,533 CRORE, WHICH IS JUST 41% OF WHAT THE GOVERNMENT HAS ESTIMATED
NEW DELHI: With the Supreme Court mandated dues pushing Vodafone Idea to the brink, Vodafone Group chief executive officer (CEO) Nick Read on Friday met communications minister Ravi Shankar Prasad to discuss relief options to keep the company afloat.
The meeting assumes significance as Vodafone Idea Ltd (VIL), where the British telecom giant holds just over 45% stake, is staring at ₹53,000 crore in unpaid statutory dues, having paid only ₹3,500 crore in two tranches so far. VIL has said its self assessment pegs adjusted gross revenue (AGR) liabilities at ₹21,533 crore, which is just 41% of what the government has estimated.
After the over half an hour meeting with Prasad, Read refused to comment on whether the British telecom giant will exit India, saying “no comments”.
Read also met finance minister Nirmala Sitharaman earlier in the day.
Telecom companies are desperately waiting for a bailout package from the government after a Supreme Court order put their statutory liabilities at ₹1.47 lakh crore, and all eyes have been on the department of telecom (DOT) for the much-needed breather to fix the AGR imbroglio.
VIL recently told the government that it would not be able to pay the full dues unless state support is extended to survive the crisis.
It had made a strong plea for setting off ₹8,000 crore of goods and services tax (GST) credits, a three-year moratorium on payment of the remaining amount which should be staggered over 15 years at a simple interest rate of 6 per cent, drastic cut in licence fee and fixing of a minimum price of calls and data. The intensity of crisis being faced by VIL can be gauged from the fact that Vodafone Idea chairman Kumar Mangalam Birla has held multiple rounds discussions at the telecom ministry and finance ministry over last few weeks to look for a solution to keep the telecom operations on track.
In December, Birla had said VIL may have to shut if there is no relief on the statutory dues. “If we are not getting anything, then I think it is the end of the story for Vodafone Idea,” Birla had said. “It does not make sense to put good money after bad... We will shut shop.”
Even Read recently made it clear that the situation in India is critical, following the AGR ruling of the Supreme Court. After a Supreme Court rap on February 14 for missing the payment deadline, top telecom firms Bharti Airtel, Vodafone Idea and Tata Teleservices over the last few weeks have scrambled to pay a part of their outstanding dues.
Last month, the top court rejected a plea by Bharti Airtel and Vodafone Idea for extension in the payment schedule.