As per industry reports, Vodafone Idea Chairman Kumar Mangalam Birla, at a recent industry event, said that it might shut down operations if government relief packages are not provided.
This follows the recent ruling delivered by the Supreme Court wherein it has allowed the Department of Telecommunications (DoT) to collect the adjusted gross revenue (AGR) related arrears from the operators within three months.
Vodafone Idea is the merged entity of Vodafone India and Idea Cellular. The merger had been announced in 2018. As per industry reports, Vodafone Idea has an accumulated debt of Rs 1.17 trillion. Moreover, Vodafone Idea has reported a net loss of Rs 509.21 billion during the quarter ended (QE) September 2019, up from Rs 49.73 billion reported during the QE September 2018.
In such a scenario, it seems difficult for the telco to continue operation without any support from the government.
The telecom operator is hoping to receive Rs 530.38 billion from the government as part of the relief package.
