Vodafone CEO dials for relief

Meets Ministers, eyes ‘new, good beginning in India’

March 06, 2020 10:22 pm | Updated 10:47 pm IST - NEW DELHI

Nick Read

Nick Read

Even as its Indian joint venture — Vodafone Idea — is reeling under severe pressure to pay its adjusted gross revenue (AGR)-related dues, Vodafone Group CEO Nick Read on Friday told the government that the company was looking at a ‘new, good beginning’ in the country, The Hindu has learnt.

In a 40 minute-long meeting with Telecom Minister Ravi Shankar Prasad, Mr. Read also pitched for relief measures to help the beleaguered telecom player. The meeting was also attended by Telecom Secretary Anshu Prakash and Vodafone Idea MD and CEO Ravinder Takkar as well as the company’s chief regulatory and corporate affairs officer P. Balaji.

Mr. Read also met Finance Minister Nirmala Sitharaman earlier in the day.

“During the meeting, the Minister reiterated that they wanted Vodafone to remain invested and do well in India. The government is against any monopoly in the sector,” a source, who did not want to be named, said.

The source added Mr. Prasad pointed out that India was the fifth biggest economy and one of the highest recipients of FDI. “The Minister told them that India was pushing for a $1 trillion digital economy and much of it is depended on mobiles. So, the firm had an enormous business opportunity in India They already have about 30 crore subscribers here – which is a big asset. That is why they need to see India positively in the future,” the source said.

When the Minister pointed out that the company didn’t take adequate precautions on the AGR issue such as not making provisions in their books of accounts, the Vodafone Group CEO was learnt to have acknowledged the oversight.

“One positive thing is that he told the Minister that the company wants to make a new, good beginning in India. They sought the government’s help for this but that is work is progress,” the source said, adding that for anything to move forward, Vodafone Idea should at least pay the principal amount that is due.The company has informed the Minister that they are exploring options to make additional payment to the DoT,” the source said.

“The government cannot give a breather to single company. If there is some relief, it will be for all firms... but right now the ball is in the Supreme Court,” the source said.

Following the meeting with Mr. Prasad, Mr. Read refused to comment on whether the British telecom giant will exit India.

The meeting follows Vodafone Idea’s submission to the government stating that its “self assessed” liability to the government stood at ₹21,533 crore — less than half of the over ₹53,000 crore estimated by the Department of Telecommunications (DoT).

Vodafone holds a little over 45% stake in Vodafone Idea, where Aditya Birla Group is the other promoter.

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