Govt unhappy over Vodafone's biz 'uncertainty' remarks; CEO says media distorted statement

government on Wednesday expressed displeasure over business uncertainty remark me by Vodafone Group in India citing Supreme Court judgement that puts around Rs 1.33 lakh crore liability on telecom players that are operational at present. Vodafone Group CEO Nick Re is learnt to have written back to Prime Minister Narendra Modi promising that company will remain invested and blamed media for distorting his remarks me around telecom business in India.

RE | Vodafone's Future In India Could Be In Doubt Without Govt Support

'Statement misrepresented by media'

" government has expressed displeasure and disapproves Vodafone CEO Nick Re statement around telecom sector in India," a senior telecom ministry source told reporters. source said that Re has informed government that media has misrepresented his statement and Vodafone is confident of India growth story and wants to stay invested in India.

While sharing financial performance report of Vodafone, Re h said that "following Supreme Court AGR ruling (justed gross revenue) on top of financial stress alrey present, situation of telecom sector in India and Vodafone Idea is critical".

RE | Is This End Of One Of India's Incumbent Telecom Player Vodafone?

company's financial performance statement said that significant uncertainties exist in relation to Vodafone Idea Ltd's (VIL) ability to generate cash flow that it needs to settle or refinance its liabilities and guarantees as y fall due, including those relating to (Supreme Court) judgement.  "VIL is seeking relief from Indian government, including, but t limited to, granting a waiver of interest and penalties relating to judgement," statement said.

According to an internal estimate prepared by DoT, total dues on telecom service providers arising out of SC order are around Rs 1.33 lakh crore. As per estimate, liability of Bharti Airtel Group is Rs 62,187.73 crore, Vodafone Idea Rs 54,183.9 crore and BSNL and MTNL Rs 10,675.18 crore.

Vodafone, however, estimates VIL liability to be around Rs 28,310 crore and that of group's exposure capped at Rs 8,400 crore.

"Having considered possible future developments for VIL, Group has concluded that re are significant uncertainties in relation to VIL's ability to settle liabilities relating to AGR judgement and has t assessed a cash outflow under agreement to be probable at this time," Vodafone statement said.

RE | Jio: COAI Blackmailing Govt Citing Imaginary Crisis In Telecom Sector

Following displeasure expressed by government, Re in a letter to Prime Minister is learnt to have said that some of cover, particularly in India, has been distorted. Re said that he spoke specifically about financial stress in telecom sector in India and that situation h become critical. He mentioned that during his recent India visit and interaction in government, re was a genuine appreciation of situation and a desire to intervene to dress issues.

Vodafone CEO was appreciative of government setting up Committee of Secretaries to take a comprehensive view on all aspects including AGR matter. Re in his letter is learnt to have said that Vodafone Group believes in potential of India and it remains a key market for group. An email query sent to Vodafone and Vodafone Idea did t elicit any reply in this regard.

RE | Airtel 3G Phased Out In More Telecom Circles, Check Out Cover w