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Vodafone Idea Aims at Having a Fresh Start in India After AGR Crisis

HighlightsVodafone Idea is beneath a number of monetary stress owing to AGR duesThe telco is consistently searching for reduction from the federal government over AGR duesVodafone Idea has 300 million subscribers in IndiaOver the previous few weeks, we now have been listening to quite a bit about Vodafone Idea Limited and its huge monetary stress. The telco has to pay over Rs 53,000 crore to the federal government in the direction of AGR dues. As we reported final week, Vodafone Group CEO was about to satisfy authorities officers to debate the AGR disaster. Nick Read, who’s the CEO of Vodafone Global Plc met with the federal government officers and famous that the corporate desires a recent and good begin in India. As per the sources of ET Telecom, Nick Read met with the finance minister of India Nirmala Sitharaman together with Telecom Minister Ravi Shankar Prasad to debate reduction measure which might make sure the viability of Vodafone Idea within the Indian telecom business.Government Might Not Monopolise Indian Telecom TradeTelecom Minister Ravi Shankar Prasad clearly famous that the federal government is just not planning to monopolise the telecom business as Vodafone Idea has virtually 300 million subscribers in India. When Vodafone and Idea Cellular have been merged, the subscriber base was round 440 million. Not solely this, the Indian market is rising at a fast scale and at present attracting numerous overseas traders.Nick Read marked that AGR points should have been resolved again earlier because the telco is now going through large misery. The authorities additionally desires Vodafone Idea to stay invested in India. To guarantee Vodafone Idea stays within the business, the federal government is planning numerous reduction measures which might clear up their huge AGR dues.Notably, the federal government would possibly repair flooring tariffs quickly as it will revive the telecom sector and assist the telecom sector to get better their losses. Telecom operators at the moment are supporting flooring pricing, together with Reliance Jio because the monetary well being of the telecom business is just not in fine condition.Vodafone Idea AGR Dues a Big Setback for the FirmAs per the estimates of DoT, Vodafone Idea has to pay Rs 53,000 crore to the federal government. However, the operator has self-assessed their AGR dues which stands Rs 23,000 crore out of which roughly Rs 7,000 crore is the principal quantity. Currently, Vodafone Idea has simply paid Rs 3,500 crore. Vodafone Idea has addressed the federal government to offer reduction measures in any other case, they might be pressured to close down their operations.Also, the telco big has requested the federal government to permit GST refund of Rs 8,000 crore which might be later settled of their AGR dues. Government can be planning to create stress funds which might supply smooth loans to careworn telcos on straightforward phrases.

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