If a company is shut down, 10,000 people will be unemployed. Million subscribers in crisis, senior Mukul Rohatgi This will affect the entire telecom sector, eliminating the competition and leaving only two firms, he said.
Vodafone Idea owes Rs 7000 crores to the government But interest, penalties and interest on fines have been increased from Rs 23,000 to Rs 25,000 crore. The company has already paid Rs 2150 crore. The Supreme Court order for telecom companies to pay all their dues immediately to the government has created a crisis for the loss-making enterprises.
The companies tell the telecommunications department that there is no way to pay these dues overnight. The government also needs to be aware of the situation, otherwise the sector will only have two operators. Vodafone Idea spokesperson said:
The telecom sector has suffered huge losses in the past years as it continues to be competitive. A few companies were in debt. The Supreme Court on Monday refused to comment on Vodafone Idea’s offer to pay Rs 2,500 crore and Rs 1,000 crore by Friday. The company has been asked not to take any action against the payment and not encash the bank guarantee deposited with the government.
Vodafone’s operations in India will be halted if the government insists on overnight payments in this situation. The report says that in an unemployment-stricken economy, it could make 10,000 people unemployed and affect 50,000 people.
Bharti Airtel and Tata Group have paid back Rs 10,000 crore and Rs 2,197 crore respectively. Bharti Airtel still owes the government Rs 25,586 crore in arrears. Tata Tele Services has to pay a total of Rs 13,800 crore. The deadline for all payments is March 17.