Modi government cannot save Vodafone-Idea from drowning (Full Report)

The central government also cannot save the Vodafone Idea, which is facing financial crisis, from sinking. The company owes Rs 53,000 crore towards AGR. The Supreme Court had asked the company to pay the arrears by January 23, but the company has filed a review petition in the court.


  • Vodafone-Idea owes AGR a total of Rs 53,000 crore
  • The Supreme Court had asked the company to pay the arrears by January 23
  • But the company has filed a review petition in the Supreme Court
  • Analysts say that Vodafone-Idea is now very difficult to handle

Kalyan Parvat, Kolkata Any attempt by the government to bail

out the telecom company Vodafone Idea (VIL) facing a huge financial crisis due to AGR dues will not be enough. However much the government can help Vodafone Idea, it will not be able to compete with Reliance Jio and Bharti Airtel in the market .

A costly deal for the government,

Deutsche Bank said in a release, “If the central government provides immediate assistance to the Vodafone Idea to overcome the crisis, it will prove to be a costly deal for the government.” The German investor bank said, “VIL’s co-promoter Aditya Birla Group may consider moving Vodafone Idea to Bankruptcy, so that it can buy back a stake in the business.”

‘The laws and regulations in telecom are not clear’

He said that the rules and regulations of the telecom sector in India are not clear. The central government is trying to prevent promoters from buying the assets of their bankrupt company so that they cannot take advantage of the loopholes present in the law. Even in the case of self-declared bankruptcy, the rules are not completely clear.

Birla said the company will shut down

Vodafone Idea owes a statutory dues of Rs 53,000 crore towards AGR (Adjusted Gross Revenue) and the company’s chairman Kumar Mangalam Birla has already said that the company would be shut down if the government or the court did not give relief. ‘Three needs to be met’ According to Deutsche Bank, Vodafone Idea will still have to increase tariffs significantly, take substantial relief from the government and retain market share. The bank said, “But we believe that even if two out of three of its requirements are met, it will not be enough for it.” ‘Just two telecom companies will dominate’

According to analysts, under the current circumstances, Jio is pushing hard to increase its market share and aggressively add customers. He says that in the next 9-12 months, only two private companies will rule the telecom market. According to CLSA estimates

‘Jio can be $ 66 billion’

, Jio’s operating income will double to Rs 52,400 crore in the next two years due to the increase in tariff and increase in the number of customers and at that time its customers The number is expected to be 50 crores. The brokerage company said, “By FY 2022, Jio’s EBIDTA will reach Rs 52,400 crore and the total value of its mobile business is expected to be $ 66 billion.”
Exit mobile version