If Voda-Idea closes, the Indian economy could suffer a lot

New Delhi, 21 February 2020, Friday

The government is working on several options to protect the business of Vodafone Idea. This includes the option to allow more time to pay off debt other than adjustable gross revenue.

A senior official said that the government wants to improve the situation in the telecom sector and wants to take measures that could prevent the shortfall. If Voda Idea closes, the Indian economy could suffer a lot. This is why the Government of India does not want the company to close.

Sunil Mittal seeks tax reduction

After meeting Vodafone Idea chairman Kumar Mangalam Birla in the telecommunications ministry yesterday, recruiting Airtel chairman Sunil Bharti Mittal met with telecom minister Ravi Shankar Prasad and demanded a reduction. Mittal said that AGR has become a major crisis for the industry. The government is looking for a solution.

A government official said the government was not considering bringing in an order to change the definition of AGR to help government companies like GAIL, Powergrid Corporation of India and Oil India Limited.

They said that they would have to go to the telecom tribunal as per a signal from the Supreme Court to get relief on the demand notice issued by the telecommunications department.

In the DoT crisis

Telecom officials say that our dilemma is that on the one hand we have to recover from the telecom companies in compliance with the Supreme Court order. At the same time, it is important to make sure that these companies continue to operate.

However our attitude is clear. The government does not want to make Monopoly in the country. They said the Department of Telecommunications is considering all possible ways. It has the option of avoiding payments other than AGR.

Companies are paying money

After paying some money to Vodafone Idea and Recruitment Airtel, Tata Teleservices has also paid the AGR amount. Tata Tally paid Rs 2,197 crore. However, as per the calculations of the central government, the company has to pay Rs 14,000 crore. Notice has also been issued for this.

In addition, the Telecommunications Department may issue a notice for payment up to March 17. The government may seek the help of auditors firms to clarify the issue of AGR payments. In fact, there has been a huge gap in the calculation of government and telecom companies.

After this, the government can take the help of auditors to bring the correct figures so that the correct figures can be obtained. It is noteworthy that Bharti Airtel has paid Rs 10,000 crore to the government through AGR.