Vodafone Idea Dues Cross Rs 1.6 lakh CroresTop Stories

August 19, 2021 12:37
Vodafone Idea Dues Cross Rs 1.6 lakh Crores

(Image source from: telecomtalk.info)

After Reliance Jio made it to the Indian market of telecommunication and gained record subscribers in no time, several mobile networks struggled to save themselves from losses. Airtel is in second place while Vodafone and Idea joined hands to stand in the race in the Indian market. Suffering heavy losses and mounting debts, Vodafone Idea failed to pay the full license fee for the Indian government for the first quarter of the year with a shortfall of Rs 150 crores. This is the second time, Vodafone Idea delayed the payments for the license fee. This will lead to a new penalty and use demand that is nearly Rs 1.6 lakh crores which is the amount to be paid for the Department of Telecom.

The Telecom Licence fee for April-June quarter for 2021-22 is around Rs 690 crores and pending dues are said to be Rs 540 crores. The Telecom Licence is charged at 8 percent of the adjusted gross revenues during a specific period. When there is a delay in the payment, the interest penalty will be levied at the Marginal Cost of Funds on Landing Rate (MCLR) along with 4 percent. Vodafone Idea will receive notices very soon if the payment is not made. Vodafone Idea is currently in huge crisis and their promoters Vodafone Plc from the UK and Aditya Birla Group refused fresh equity investments. Kumar Mangalam Birla, the Chairman of Aditya Birla Group penned a letter to the Cabinet Secretary Rajiv Gauba saying that his group's stake of 27 percent will be offered to the government.

He also sought an urgent bailout and requested a revival package. Vodafone Plc global CEO Nick Read made it clear that there would be no funds coming to India. The Indian government is working to find a possible solution so that Vodafone Idea will not head for bankruptcy. Vodafone Idea has 27 crore subscribers and it owes Rs 96,300 crores to the government on the spectrum dues. There are talks that the government of India is keen to extend a two-year moratorium on the spectrum payments for Vodafone Idea.

By Siva Kumar

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