Vodafone Idea Relief: Scindia's 'No Duopoly' Stand Boosts Telecom Diversity Hope
India cannot afford a duopoly in the telecom sector, Union Minister Jyotiraditya M Scindia said on Tuesday, as the government is reportedly examining a relief package for Vodafone Idea.
Speaking at the World Wi-Fi Day Summit organised by the Broadband India Forum, Scindia said a duopoly would not support India’s digital ambitions. His comments are being seen as a signal of government intent to preserve consumer choice and ensure long-term market stability.
Vodafone Idea owes Rs 83,400 crore in adjusted gross revenue dues to the government. It had sought waivers on over Rs 45,000 crore in interest, penalty, and interest on penalty. The Supreme Court recently dismissed its plea, adding pressure to the company’s financial position.
Earlier in June, NDTV Profit had reported that the the government was actively examining ways to support Vodafone Idea, which is facing acute financial stress following the Supreme Court’s dismissal of its plea on AGR dues.
Top government sources had told NDTV Profit that the Centre remains committed to maintaining healthy competition in the telecom sector and is firmly against the emergence of a duopoly.
The government was evaluating two to three possible measures, including a moratorium on pending AGR payments, they had said.
One proposal under consideration involves asking banks to extend fresh credit to the telecom operator, and in return, the government may offer concessions to lenders, aimed at de-risking their exposure to the telecom sector, the persons privy to the matter had said.
On Tuesday, on Tuesday clarified to the exchanges that it has not received any communication from the government regarding relief to the company over its pending adjusted gross revenue dues.
"We have not received any communication from the Government in relation to the above reported matter. As and when there is any development which requires disclosure, we will do the needful," the telecom firm said in a regulatory filing.
