Outlook on Vodafone and Idea still critical says the parent firm

Outlook on Vodafone Idea for its Indian telecom joint venture remained crucial, and it was seeking relief from the government to pay the adjusted gross revenue (AGR) dues over a longer duration.

Vodafone group said in a statement in December, “In October the supreme court gave an unfavorable judgment in the AGR case against the industry. The company is seeking different forms of relief to assure that the rate and level of the payments it makes to the Indian government is sustainable and it can meet its other responsibilities as they fall due”.

The Department of telecommunications is challenged by Telecom operators for the methods they have adopted to calculate AGR. The Supreme court upheld the government’s definition of AGR and asked operators to pay past dues by 24 January.

According to the sources, if the sustainable payment terms are not made available, it will lead to the immediate closure of one of India’s largest and oldest telecom company & it will cause disruption of 300 million subscribers and putting lakhs of the job at risk.