Vodafone Idea News: Vodafone Idea to pay Rs 3,500 crore in telecom dues this week, shares rise | India Business News

NEW DELHI: Beleaguered wi-fi service Vodafone Concept can pay Rs 3,500 crore ($490 million) in telecom dues to the federal government by February 21, a lawyer for the corporate stated on Monday.
Hopes that Vodafone Concept might outlive the monetary squeeze because of the excellent dues funds helped its shares acquire as a lot as 23.5% on Monday, their greatest intra-day acquire since January 21, after dropping greater than 24% per cent on Friday.
“Whereas there’s a concern that Vodafone is in opposition to the wall, there’s a slim hope that they are going to get by,” stated Siddhartha Khemka, head of analysis at Motilal Oswal Monetary Providers in Mumbai.
The corporate lawyer declined to be title because the matter remains to be in court docket.
The division of telecommunications (DoT) final week ordered cell carriers to right away pay billions of {dollars} in dues after the Supreme Courtroom threatened the businesses and officers with contempt proceedings for failing to implement an earlier ruling.
Vodafone Concept, a enterprise between the Indian unit of Britain’s Vodafone Group Plc and billionaire Kumar Mangalam Birla’s Concept Mobile, can pay Rs 2,500 crore to the federal government on Monday and one other Rs 1,000 crore by Friday, a information company reported.
Vodafone owes roughly $3.9 billion to New Delhi in dues, curiosity and penalties.
The corporate declined to remark, and the telecom ministry didn’t reply to an e mail in search of remark.
Native rival Bharti Airtel Ltd stated on Monday it had made a cost of Rs 10,000 crore in the direction of the dues.
Analysts masking telecoms sector say Vodafone Concept is essentially the most fragile of the three main wi-fi carriers and if it shuts store, the market would form up as a duopoly of rivals Airtel and Reliance Industries’ Jio.
Vodafone Concept has beforehand stated its capacity to proceed as a enterprise was contingent on the Supreme Courtroom permitting it to change points similar to cost timelines with the federal government.
“Given the federal government’s keenness on sustaining three personal telcos, we imagine the division of telecommunications or the federal Government will request the Supreme Courtroom to barter AGR (adjusted gross income) funds with telcos,” stated analyst Vivekanand Subbaraman of analysis agency Ambit Capital.

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