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Kumar Mangalam Birla, the Chairman of Aditya Birla Group on Friday, said that “Vodafone Idea will shut the shop and opt for insolvency if the government does not provide the substantial relief which the company has asked for.”
Calling AGR as the “Big elephant,” Birla, at Hindustan Times Leadership Summit said, “There is no company in the world that could get that sort of money in three months, and if the center does not provide a substantial relief on the AGR-based dues, then we have to shut our shop, and it would be end of the story for us.”
Continuing to the statement, KM Birla said that, “Aditya Birla Group will not invest any money in the company in the absence of relief from the government.”
“There is no sense that good money should follow bad money,” he added.
Further adding to this, Birla said that “I agreed with the Vodafone Group CEO Nick Read, who had said that the situation of the telecom sector is going from a critical situation, and the company may head for liquidation of its business in India. if the government does not ease spectrum fees.”
Details:
Idea-Vodafone, a joint venture of Vodafone India and Idea Cellular, has reported a massive loss of Rs 50,921.9 crore in the July-September quarter.
Has been pegged for additional AGR liability of Rs 44,200 crore towards the license fees, spectrum usage charge (SUC), interest, and penalties that were shouted to be paid in under three months.