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HomeNewsTelecom NewsKM Birla raises SOS for Govt support for survival of Vodafone-Idea
Friday, 06 December 2019 05:29

KM Birla raises SOS for Govt support for survival of Vodafone-Idea

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As the Vodafone Idea Limited (VIL) has reported about Rs. 51000 crore loss, its chairman Kumar Mangalam Birla said that the company will have to be closed down if the government doesn't provide relief that the company has sought.

After the Supreme Court’s order on Oct 24 and its decision on the adjusted gross revenue (AGR), the company posted a mammoth loss of Rs 50,921.9 crore in the second quarter, pulled down by provisions for AGR dues.

He said: "We will shut shop if we don't get relief, it could be the end of the story for us. There is no company in world that could get that kind of money in three months."

He added: “The big elephant in the room is AGR. Which is actually I think something which lies in the court of judiciary. I believe government can have a dialogue. This was a suit filed by the government against telecom service providers."

As a matter of fact, AGR (adjusted gross revenues) is a percentage of which the telecom companies pay as statutory dues. The Supreme Court had upheld the government position that non-telecom revenues have to be included in the AGR for calculating dues.

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