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Vodafone Idea Will Probably Lay Off Employees Among Other Measures to Cut Costs

HighlightsVodafone Idea’s estimate of dues is pegged at Rs 21,533 croreUnion Cabinet would possibly quickly give a aid to the businessesSupreme Court will even hear a modification plea from the telcosNetwork integration has been a big train for Vodafone Idea within the months following the merger of the 2 main telecom corporations. In truth, community integration was one of many cornerstones of the alliance that occurred three years again. However, now the tables have turned, and Vodafone Idea is likely to be doing community integration in a special method and out of solely completely different causes. The ailing telecom operator would possibly now be trying ahead to chopping prices in an aggressive method. This signifies that in plenty of main and minor circles, the customers of Vodafone Idea is likely to be utilizing the identical community as Vodafone Idea Ltd seeks to merge some large and small circles. This report comes from ET, that additionally highlights that the staff of the corporate may also be affected because of this transfer.Network Integration of a Different FormIn this train to chop prices, round 6 to 7 circles is likely to be in jeopardy. Also, the redundancy of workers can be eliminated by shedding staff in massive numbers. It can be value noting that as we converse, Vodafone Idea is probably going ideating on what number of staff ought to be laid off. The whole individuals working for the corporate proper now are 11,000.DoT and Vodafone Idea Clash on EstimatesThe Department of Telecommunications (DoT) and Vodafone Idea have been on polar ends on the matter of Adjusted Gross Revenue (AGR) as the 2 have arrived on very completely different estimates concerning the whole dues which VIL has to pay. While DoT estimates the whole dues to be round Rs 53,000 crore, the Vodafone Idea’s estimate pegs this quantity to be round Rs 21,533 crore.Vodafone Idea Asking for More AidIn the approaching days, Supreme Court will hear a modification plea from the telecom corporations, together with Vodafone Idea which can ask for a a lot simpler fee timeline for AGR dues. In the meantime, the telecom firm has a burden of paying Rs 3,500 crore along with the identical quantity which it has paid already. Out of all of the three telecom corporations, Vodafone Idea is the worst hit due to the excessive quantum of dues. It is value noting that greater than 75% of the dues are constituted by the pursuits and penalties on the precise dues. As per Vodafone Idea, it might require 15 years to repay its whole AGR dues if mixed with the three years’ moratorium and an Rs 8,000 crore GST refund.

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