Government May Offer Relief To Ensure Continuity Of Vodafone Idea Operations |Profit Exclusive
The Centre has acknowledged that Vodafone Idea’s circumstances differ from other telecom operators, underscoring the need for a tailored approach.
The government is considering extending targeted relief to Vodafone Idea Ltd. (Vi) to ensure the continuity of its operations, sources told NDTV Profit. The support is intended to keep the telecom operator afloat rather than clear its entire debt and outstanding dues.
The Department of Telecommunications (DoT) is expected to submit a detailed proposal to the Prime Minister’s Office, in line with the Supreme Court’s order on Monday. The proposal will outline the scope of relief, a reassessment process, and the quantum of support that may be provided to Vodafone Idea.
According to sources any relief package is likely to be carefully calibrated to sustain Vodafone Idea’s operational continuity. The final decision on the nature and extent of government aid will depend on the DoT’s recommendations.
The Centre has acknowledged that Vodafone Idea’s circumstances differ from other telecom operators, underscoring the need for a tailored approach.
Officials have also emphasised that the government is not aiming to create a duopoly in the sector. Instead, the focus remains on maintaining healthy competition while ensuring Vodafone Idea’s survival.
The Supreme Court on Monday allowed the government to reconcile all Vodafone Idea dues till fiscal 2016-17. The Supreme Court’s order has provided clarity on the contentious adjusted gross revenue (AGR) issue, paving the way for the Centre to take concrete steps.
The Court has modified its Vodafone Idea AGR Case order issued on Oct. 27, the Legal Counsel for the company told NDTV Profit. The Vodafone Idea Legal Counsel also added that the new order will be uploaded by Tuesday.
Mahesh Agarwal while talking to NDTV Profit said that the telecom company will make the representation to the government once the order is out. He further added that there were lots of mistakes in the calculation of the AGR dues. According to him the principal amount may go down once the amount is reconciled.
