Vodafone known as the rumours baseless and has mentioned that it’s engaged with the federal government to settle the AGR subject.
Following the Supreme Courtroom of India order directing the assorted telecom corporations within the nation to make funds on account of licence charges and a share of the adjusted gross revenues, there was an IANS report that Vodafone might exit Indian operations. The corporate has now denied these rumours, calling them baseless and has mentioned they’re very a lot engaged with the Indian authorities to settle the problem.
The Vodafone Group is working the Indian enterprise as Vodafone Concept after a merger with the Aditya Birla Group-owned Concept. The corporate might be known as upon to make a cost of RS 28,309 crore if the Depart of Telecom, DoT raises its invoice on the joint entity. The corporate might get into severe monetary difficulties if it had been to go forward and make this cost.
Vodafone Concept together with the opposite telecom operators at the moment are in discussions with the federal government to just accept a staggered schedule for this cost in order that the businesses’ funds should not put in severe jeopardy.
One other hearsay about Vodafone was that it had approached its lenders asking for a debt recast within the firm. This has additionally been denied by the corporate in its assertion: ” We categorically deny and dismiss this as baseless and factually incorrect. We’ve got not made any request for debt recast to any lender or requested for remodeling of cost phrases. We proceed to pay all our money owed as and when these fall due”.
These developments have come at a time when the corporate’s long-term loans and debentures issued by the corporate are being rated at “A-“ by the score companies, down from “A” earlier.