Reportedly following the supreme court of india order directing the various telecom companies in the country to make payments on account of license fees and a share of the adjusted gross revenues, there was a report that vodafone may exit Indian operations. Meanwhile the company has now denied these rumors, calling them baseless and has said they are very much engaged with the Indian government to settle the issue.
Furthermore the vodafone Group is operating the Indian business as vodafone idea after a merger with the Aditya Birla Group-owned Idea. Perhaps the company will be called upon to make a payment of RS 28,309 crore if the Depart of Telecom, DoT raises its bill on the joint entity. The company could get into serious financial difficulties if it were to go ahead and make this payment.
Moreover vodafone idea along with the other telecom operators are now in discussions with the government to accept a staggered schedule for this payment so that the companies’ finances are not put in serious jeopardy. We categorically deny and dismiss this as baseless and factually incorrect. We have not made any request for debt recast to any lender or asked for reworking of payment terms”. Apparently these developments have come at a time when the company’s long-term loans and debentures issued by the company are being rated at ‘A-‘ by the rating agencies, down from ‘A’.
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